Apple has warned customers that they might have to wait longer to get its products because the world’s largest iPhone factory had to close because of a strict COVID lockdown.
Apple said its Zhengzhou factory is working at a much lower capacity.
Officials shut down the neighborhood where Foxconn’s factory is for seven days starting November 2.
China still wants to get rid of COVID and uses lockdowns to stop even small outbreaks.
Investors who thought China would soon lift its restrictions on COVID will likely be disappointed by the news. But on Friday, the Chinese stock market went up sharply because there were rumors that lockdowns would end.
Beijing’s strict approach to stopping the spread of the virus has cost the country’s economy a lot of money. But China’s leader, Xi Jinping, who has backed the policy, hasn’t said anything to suggest that it will change soon.
According to the latest data, the world’s second-largest economy is having a hard time dealing with long-term problems like COVID restrictions, a drop in property prices, and the risk of a global recession.
China’s trade numbers for October, which were released on Monday, showed that its imports and exports went down more than expected. It is the first drop since May 2020. This was a significant change from September when shipments went outward by 5.7% more than they did the year before. But, once again, it was the worst since May 2020.
New COVID cases
On Sunday, the country reported 5,643 new cases of COVID, the most in a single day in the last six months. The Foxconn factory is in Zhengzhou, the capital of the central Chinese province of Henan and home to about 10 million people. On Monday, there were 3,683 cases and 22 deaths.
The company also discovered cases inside the factory, which led to an abrupt shutdown that caused workers to leave the building. On Monday, the company started looking for new employees at its plant in Zhengzhou. It offers workers who left the plant between October 10 and November 5 a one-time bonus of 500 yuan (US$69; GBP£60.88) if they return to work.
A statement on its recruitment WeChat account says it also offers an hourly pay raise of 30 yuan.
Due to China’s COVID control measures, Foxconn, the biggest contract electronics maker in the world, has changed its plans for the fourth quarter. The fourth quarter is usually a busy time for the tech company because of the holiday season in the West at the end of the year.
The Taiwanese company said that they are working with the government of Henan province “to put an end to the pandemic and get back to full production as soon as possible.”
Foxconn, formerly Hon Hai Precision Industry, produces 70% of all iPhones shipped worldwide.
Largest iPhone factory in the world was locked down
Due to China’s strict coronavirus policies, a district in the city of Zhengzhou. The home to the world’s largest iPhone factory, has been locked down.
The lockdown started on Wednesday and will last for seven days.
The iPone 14 production at the Foxconn factory in the city could be affected by the move.
People and businesses in China still need help with President Xi Jinping’s strict zero-COVID policy.
Local officials will lock down the Zhengzhou Airport Economy Zone immediately.
The government announced the suspension of public transportation via social media platform WeChat.
Officials said they would be very strict with anyone who broke the rules in any way.
About 10 million people live in Zhengzhou, the capital of Henan province in central China.
In the week leading up to last saturday, Zhengzhou reported 167 locally spread infections. This was up from 97 the week before.
The lockdown comes at the wrong time for Apple, right after the release of the iPhone 14 and before the critical shopping seasons of Christmas and the Lunar New Year.
Foxconn’s Zhengzhou plant, which has about 200,000 employees makes most of Apple’s new phones.
