Two sources told Reuters that because workers infected with COVID-19 had to resign, production of the Apple iPhone 12 at Foxconn’s factory in India had fallen by more than 50%. Devices specifically for India (the second-largest smartphone market in the world). Tamil Nadu is one of the states hardest hit by the coronavirus wave that hit India for the second time.
Authorities began a complete lockdown of the state starting Monday, shutting down public transportation and closing stores to curb the rise in infections. More than 100 Foxconn employees in the state have tested positive for COVID-19 and the company also imposed an entry ban.
A source said that until the end of May, the company said at its factory in the capital of Chennai: “Since yesterday, employees can only leave the factory and not enter the factory.” Two sources said: “There is only one. A small part of the products is withheld. “Both factories have reduced their production capacity by more than 50%. They refused to reveal the name of the factory because they were not authorized to speak to the media. Foxconn is the manufacturer of The world’s largest contract electronics and Apple’s top supplier.
Foxconn is the world’s largest contract electronics manufacturer and Apple’s top supplier. At a factory in India, they tested positive for COVID-19 and the company is providing them with support, including medical assistance. “Foxconn considers the health and safety of our employees as our top priority. That is why we have been working closely with local government and public health authorities in India to deal with what we and all businesses are facing when responding to the COVID-19 crisis.
Challenge, “it said in a statement to Reuters. Foxconn declined to comment on the factory’s output or the specific situation of ic’s staffing level. Apple did not immediately respond to a request for comment. After Reuters reported, the Foxconn shares fell as much as 6.2%. The stock closed 5.31% lower, outpacing the overall market drop of 3.8%, on market concerns about rising COVID cases. -19 in Taiwan.
India has benefited from Apple’s decision to move certain production areas from China to other markets, which has greatly benefited Apple. In the trade war between Washington and Beijing, Apple announced in March that it would begin assembling the iPhone 12 in India. Although Apple has a small share of the cheap Indian market, which is dominated by mobile phones, Apple CEO Tim Cook said in January that India has a small share of the Indian market.
Foxconn said that due to the trend of working from home, smartphone sales were strong, leading to better-than-expected performance in the fourth quarter. Canalys said India’s growth continued into the first quarter when Apple shipments surpassed one million iPhones. Canalys said demand for the iPhone 12 has been supported by the city council and attractive financing opportunities.
Covid-19 Crisis: However, as the coronavirus crisis has spread across India, the outlook has turned bleak, and the number of COVID-19 cases and deaths in India has increased at a rate record in recent weeks. The country has recorded around 22.66 million infections and more than 246,000 deaths. Experts say the true figure may be higher. Foxconn is not the only producer affected.
Nokia and Chinese smartphone maker OPPO suspended production at their Indian factories last year after workers tested positive for COVID-19. Taipei tech research company TrendForce lowered its forecast for global smartphone production growth from 9.4% to 8.5% on Monday, pointing to the impact of the coronavirus.
TrendForce said in a report: “Therefore, smartphone brands are expected to closely monitor their entire inventory of devices. And adjust your follow-up production plan accordingly. ” It continued to affect local production and sales in the second quarter.