Foxconn’s iPhone Production Could Slump By 30% Over COVID Lockdown

BY Dave Johnson

Published 31 Oct 2022

iPhone Production

A recent report suggests that iPhone production could drop 30 percent at one of Foxconn’s main factories due to COVID-19 restrictions in China. 

Earlier in the month, Foxconn’s Zhengzhou factory in China’s Henan experienced a Coronavirus outbreak. As a result, the Chinese government introduced stringent measures to curb the virus, including locking down a city of about 10 million people. 

There’s just one problem. 

Foxconn’s main Zhengzhou plant is one of the world’s largest factories, with roughly 200,000 employees. The company is also Apple’s biggest iPhone manufacturer, responsible for 70 percent of iPhone shipments globally. So the tightening of COVID-19 curbs in China will impact production. 

According to Reuters, iPhone output in the plant could drop by up to 30 percent next month due to the China lockdown. The production slump comes at the most profitable time for consumer tech companies such as Apple, ahead of the holiday season. 

But there’s a respite. 

Foxconn To Boost iPhone Production in Another Factory

An anonymous source told Reuters that Foxconn intends to compensate for the slump by boosting production at another Shenzhen factory. 

Another person familiar with the matter said many workers remained at the Zhengzhou plant, and production continued. Unfortunately, that may have resulted in an uncomfortable working environment. 

On October 19, Foxconn banned workers from dining at the Zhengzhou plant canteens. Instead, they now had to eat their meals in dormitories. 

The treatment reportedly led to discontent among the factory workers. While some vented their frustration on social media, others reportedly fled the site over the weekend. Photos and videos on social media seemingly show Foxconn employees jumping a fence outside the plant. 

Authorities have reported 254 locally transmitted Coronavirus cases in Zhengzhou since October 19. However, Foxconn is yet to disclose whether any worker at the plant has been diagnosed with COVID-19.

Meanwhile, the Apple supplier is reportedly expanding its Tamil Nadu factory to boost iPhone production in India. So that could also help prevent a global iPhone shortage during the holiday season.