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Now the time has come – one Foxconn plant has been banned from reopening while a second one is starting with only 10 percent of its workforce.
Apple's most important supplier, Foxconn, has been banned from reopening. The Chinese government has reportedly temporarily banned production in Shenzhen. Foxconn is said to have informed employees via text message as follows:
To protect everyone's health and safety and comply with the government's virus prevention measures, we urge you not to return to Shenzhen. We will keep you updated on the situation in the city. The company will protect the labor-related rights and interests of all employees during the period of the measure. As for the happy reunion in Shenzhen, please wait for further communication.
According to the report, the Chinese government has actually banned the reopening of the plant. This step is strange, as the government denied a Nikkei report from Saturday yesterday, according to which the ban had already been issued. You can find both reports at the end of the article. In a report published today, Reuters cites a source familiar with the matter. According to the report, Foxconn is said to have asked the government to allow it to resume production in Shenzhen, but the government rejected the request. This is what the first report says. report:
Taiwanese company Foxconn was not allowed to resume production at its plant in the southern Chinese city of Shenzhen, which had been closed due to the coronavirus outbreak, a person with direct knowledge of the matter told Reuters on Monday.
Our request to resume production (in Shenzhen) was rejected. We need to improve our virus control measures for further control.
China sales could be halved
There is to be another inspection in Shenzhen this week - if the inspection is successful, the plant could start working again. In a second report, Reuters explains that Foxconn has at least received permission to reopen a second plant - but only 10 percent of the entire workforce is said to have turned up. The second report states report:
About 16,000 people, or less than 101% of Foxconn's workforce in Zhengzhou, have returned to the plant, the source said, adding that company executives are trying hard to negotiate with authorities to resume production in other parts of China, including Kunshan in southeastern Jiangsu province.
This is most likely due to transport restrictions that prevent workers from returning. Since Apple's assembly partner was unable to resume production as planned, supply bottlenecks are now unavoidable. According to estimates, Apple will be able to deliver a maximum of 41 million iPhone units worldwide this quarter - around 10 percent less than originally forecast. The well-known analyst Ming-Chi Kuo warned yesterday evening of further losses. warnedOverall, observers believe that smartphone sales within mainland China could be halved this quarter. (Photo by Rost-9 / Bigstockphoto)
