Foxconn confirms Covid-19 outbreak in its largest iPhone factory
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Foxconn confirms Covid-19 outbreak in its largest iPhone factory
Apple's main iPhone assembler just confirmed a Covid-19 outbreak at its biggest factory in Zhengzhou.
Foxconn issued a statement that "a small number of employees" has been affected by Covid-19. The company added that "operations and production in the Zhengzhou park are relatively stable" and believes the impact is "controllable".
China's strict zero-Covid policy has resulted in disruptions of Apple's supply chain over the past two years. This led to reports claiming that Apple is planning to shift production away from China.
The Wall Street Journal reported in May that Apple informed contract manufacturers to expand production outside of China, especially to India and Southeast Asia. J.P. Morgan analysts estimate 25% of all Apple products will be assembled outside of China by 2025, with 5% of iPhone 14 prodiction capacity expected to move to India from late 2022. Bloomberg says iPhone exports from India is expected to hit $2.5 billion by March 2023, which is a strong sign that India is emerging as the next manufacturing hub for Apple.
Source: South China Morning Post via 9to5Mac
