This may slow down the next-gen iPhone’s arrival.
A COVID-hit Foxconn plant in India has resulted in next-gen iPhone production being halved at the facility, as the nation struggles to cope with the severe spread of the infection.
More than 100 Foxconn employees at the plant have tested positive, and no staff are allowed to enter the facility until late May.
Even so, the facility has on-site dormitory accommodation, so the ban on entering the plant will not stop production altogether provided that remaining workers continue to test negative.
Per Reuters:
Production of the Apple iPhone 12 (AAPL.O) at a Foxconn (2317.TW) factory in India has slumped by more than 50 percent because workers infected with COVID-19 have had to leave their posts, two sources told Reuters […]
Tamil Nadu is one of the worst hit states in the second coronavirus wave engulfing India. Officials imposed a full lockdown in the state from Monday, closing public transport and shuttering shops, to try to slow surging infections.
“Employees are only allowed to leave but not to enter the facility since yesterday,” the person said. “Only a small part of output is being kept.”
More than 50 percent of the plant’s capacity had been cut, both sources said, declining to be named as they were not authorised to speak to the media. They did not specify the plant’s capacity and it was unclear how many workers were at the facility, which provides dormitory accommodation for employees.
Foxconn has confirmed that “a small number” of employees tested positive, and stated that they are being provided with medical care.
According to TrendForce, the wider impact of the coronavirus on India is large enough to cut global smartphone production.
TrendForce on Monday trimmed its global smartphone production growth forecast to 8.5 percent from 9.4 percent, citing the coronavirus impact in India on major vendors including Samsung (005930.KS) and Apple.
“Smartphone brands are therefore expected to closely monitor their inventories of whole devices and adjust their subsequent production plans accordingly,” TrendForce said in a report, adding it could revise the forecast lower still if the outbreak continues to hit local production and sales in the second quarter.
Stay tuned for additional details as they become available.
Via 9to5Mac, Reuters, and Financial Times