Ongoing problems at Foxconn’s Zhengzhou plant in China are affecting Apple’s production plans. Protests against the Covid restrictions, which have caused many to flee the factory, are expected to lead to shortages of almost 6 million iPhone 14 Pros this year.
Foxconn produces the vast majority of iPhone 14 Pro and Pro max. Work was halted in mid-October following the Covid outbreak, which put the factory and its 200,000 workers in “closed loop”. It is noted that 20,000 workers are in quarantine with limited food. It was also reported that 8 people have died since the quarantine. This, in turn, led to an escape from the plant – videos were published online of people climbing the fences of the complex and covering kilometers to get home.
Workers have fled #Apple’s largest assembly plant to escape Zero #Covid quarantine at Foxconn in #Zhengzhou . After driving outside, they’re walking to home towns more than 100 kilometers away to beat the Covid app measures designed to control people and stop this. #China pic.twitter.com/nhjojclayu
– Stephen McDenell (@stephenmcdonell) on October 30, 2022.
The company tried to appease the workers by offering them bonuses of up to $1,800 a month for staying at the factory during December and January.
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Many employees were replaced by new specialists, who later also rebelled against Foxconn’s wage and quarantine practices.
Foxconn will pay workers $1,400 to end protests and leave iPhone City in Zhengzhou
The situation at the plant still remains volatile, and estimates of lost production could change, an anonymous source told Bloomberg. Much will depend on how quickly the Taiwanese company can get people back on the assembly lines. If the lockdown continues in the coming weeks, production could be delayed even further.
Earlier this month, Apple warned that factory restrictions would affect shipments of two iPhone 14 Pro models. Six million units of smartphones are expected to be lost as a result of the failure, although Apple and Foxconn hope to recoup the losses next year.
Apple is having a tough time with the release of the iPhone 14. Falling demand for expensive tech products due to the global economic downturn has forced the Cupertino-based company to lower its total production to about 87 million units from the previous one. the previous forecast was 90 million units.
In October, it was reported that Apple ordered two suppliers to cut production of the iPhone 14 Plus by 90%, less than two weeks after the phone’s debut, due to weak demand. Indeed, it seems too expensive to pay at least $899 for the 6.7-inch iPhone 14 Plus, when you can get the iPhone 14 Pro for $100 more – or the 14 Pro Max for an extra $200.
Source: Bloomberg, Techspot
