Monday, December 5, 2022

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iPhone production severely affected by riots

After the riots at the Foxconn plant in Zhengzhou, insiders see Apple’s production goals in jeopardy. Thousands of people left the factory.

According to an insider, the recent unrest at the world’s largest iPhone factory of Apple supplier Foxconn is affecting production more than previously thought of the important holiday business. Production of Apple smartphones will decline by at least 30% rather than as much as 30% as previously thought, a person familiar with the matter told Reuters on Friday.

With the current outflow of employees, it is impossible to expand capacity again as planned by the end of the month. The factory in the central Chinese industrial metropolis of Zhengzhou mainly produces iPhone 14 models.

According to another insider, more than 20,000 employees, mostly new hires, have left the Foxconn Zhengzhou plant. They have not yet been involved in production. The Taiwanese group on Thursday admitted “technical errors” in processing new hires and apologized after riots erupted on Wednesday amid frustration over withheld wages and bonuses and far-reaching corona restrictions. These were rare scenes of open disagreement

China.

Foxconn then offered the protesting newcomers a bonus the equivalent of €1,340 if they took the hat. Videos posted on Chinese online networks show long lines of workers waiting for buses with their belongings. Foxconn declined to comment on the matter. US tech giant Apple, which had announced it would send its employees to the Foxconn plant, initially couldn’t be reached for comment.

Due to the recent record corona infections in China, Foxconn’s Zhengzhou plant has been operating in a closed cycle for weeks. This means that a total of 200,000 employees live and work on the site, isolated from the outside world. On an area of ​​1.4 square kilometers there are not only university residences, but also restaurants and sports facilities. This Foxconn factory is almost as big as the main island of Heligoland.

The restrictions due to the pandemic are being tightened again also in the rest of the People’s Republic. That dampens hopes of a quick recovery in the world’s second-largest economy and stokes fears of a recession across much of the world. More than a fifth of China’s total gross domestic product is affected by the lockdowns, according to investment bank Nomura, a number that exceeds the size of the UK economy.

After the riots at the Foxconn plant in Zhengzhou, insiders see Apple’s production goals in jeopardy. Thousands of people left the factory.

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