It only takes a viral outbreak to throw things pretty far out of whack.
More than a week after shutting down all stores and offices in China as a result of the coronavirus outbreak, Apple supplier Foxconn was approved to resume production at its Zhengzhou manufacturing plant.
According to an anonymous source with direct knowledge, only 10 percent of the workforce, or about 16,000 people, have returned. It was later reported that a Foxconn plant in Shenzhen was approved to resume partial production Tuesday.
The Zhenzhou plant is “the most critical iPhone production site,” and produces the iPhone 11 series as well as a new special edition, cheaper iPhone, according to noted Apple analyst Ming-Chi Kuo.
Apple is expected to unveil the special edition iPhone in March. On Monday, the city of Zhengzhou provided a timeline of when factories can reopen. On February 10, firms with mainly local staff can resume operations. On February 17, firms with minimal staff from areas highly impacted by the outbreak can reopen and on February 24, all factories can return to work.
After the initial return date of Feb. 2 was postponed for the plant, Kuo said he estimates a 40 percent to 60 percent labor return rate. At Shenzhen, Kuo said he expects a labor return rate of 30 percent to 50 percent at the site in charge of making new iPhone models set for release in the second half of the year.
Foxconn has yet to offer additional comment on the story.
Stay tuned for additional details as they become available.
Via CNBC