Sources suggest that unrest at Apple’s main manufacturing hub in the Chinese city of Zhengzhou would lead to a production shortage of about 6 million units of iPhone Pro in 2022, according to “Bloomberg” and seen by “Al Arabiya”. .net”.
A source told Bloomberg that the situation remains fluid at the plant and the production loss estimate could change. It will depend on how quickly Foxconn Technology Group, the Taiwanese company that manages the facility, can get workers back on the assembly lines after violent protests against Covid restrictions. He predicted that if lockdowns continue in the coming weeks, output could decline further.
Thousands of employees fled in October after chronic food shortages, to be replaced by new employees who rebelled against wages and quarantine practices.
Foxconn facility produces the vast majority of iPhone 14 Pro and Pro Max devices, which are Apple’s most in-demand devices quest’year.
Apple has reportedly lowered its total production goal to around 87 million units from a previous forecast of 90 million units.
Apple and Foxconn have both raised their shortage estimates in Zhengzhou over the past two weeks amid growing unrest, the source said, adding they expect they can recover the 6 million units in lost production in 2023.
Morgan Stanley analysts earlier this month estimated a shortage of the iPhone Pro model at around 6 million units questyear, although that was before violence erupted in Zhengzhou last week.
Foxconn’s massive manufacturing complex houses up to 200,000 workers during the peak iPhone manufacturing season. More than 20,000 new employees have reportedly left since the protests.
Another person familiar with assembly operations said that the departure of new workers is no more a factor in production than the quarantine imposed on existing employees due to their experience and skills. Foxconn is actively hiring more workers, with the help of government officials.
The Taiwanese firm, China’s largest private employer, has years of experience hiring tens of thousands of assembly workers, especially during peak seasons.
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