Foxconn has stopped large parts of production in Shenzhen, China – with possible effects on iPhone production. Partial relocation of production is possible.
Foxconn has had to halt iPhone production in China.
The contract manufacturer Foxconn had to stop large parts of its production in the Chinese province of Shenzhen. A lockdown imposed by the government due to a corona outbreak was cited as the reason for the production stop. Foxconn is one of the most important suppliers for Apple’s iPhone production. The Taiwanese company Foxconn operates several factories in China where iPhones, other products from Apple and other customers are assembled. Many buyers fear poorer availability or price increases.
17.5 million people in lockdown
According to Bloomberg, Foxconn had to stop all operations at two locations in Shenzhen. According to the company, production was outsourced to other production facilities that can still work normally. The lockdown in Shenzhen is expected to last until March 20th. A total of 17.5 million residents in the province have been in lockdown since yesterday. This is to contain a major outbreak of the coronavirus. Buses and subways no longer run. Companies that are not absolutely necessary to maintain basic services must also close.
Huawei, DJI and Tencent also affected
As a result of the halt to production, the stock value of Foxconn-owned group Hon Hai fell by 1 percent. In addition, the lockdown could have an impact on several tech companies such as Apple. The factories of Huawei, DJI and Tencent also had to close as part of the lockdown. The industry benefits from the fact that the fourth quarter with the strongest sales has already ended. At the beginning of the year, the demand for new technology products is lower.
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