China has defined new actions to stop the spread of Covid-19, which some of its people do not like. Thus, the measures are affecting even the production of iPhones, as a report indicates that the largest Apple factory in the country is undergoing a lockdown. As a result, smartphone manufacturing can drop by up to 30%, delaying the shipment of the gadget to several countries.
The information was first released by the Reutersthrough a source familiar with the topic, but who preferred not to be identified.
According to her, one of Foxconn’s factories (previously called Hon Hai Precision Industry Co Ltd) is currently in lockdown. This would be affecting the assembly of Apple’s cell phones, and could reduce the production of gadgets by up to 30%.
It is worth noting that the company produces about 70% of the world’s iPhones in countries such as Taiwan and India, but it is in China where there is the greatest concentration of manufacturing.
In addition, the Zhengzhou plant employs around 200,000 employees. According to the report, these professionals are quite unhappy with the country’s measures to prevent the spread of the virus.
Apparently, there were situations in which employees fled the place over the weekend, all this after spending days locked up in the factory premises due to the lockdown.
Foxconn would be redirecting much of the manufacturing to a company in the city of Shenzhen to try to achieve production goals. On Sunday (30), the company said it was regaining control and coordinating the full return of work.
Understand restrictions in Chinese factories
China has been facing the Covid-19 virus quite hard. According to World Health Organization (WHO), the country had 8,947,493 confirmed cases of the disease.
Therefore, the Chinese government adopted a more drastic policy to stop the spread of the virus. One of the most important points for this was the factories in regions affected by the disease. They can only be left open if they operate in a closed circuit regime. In other words, professionals would need to live in the workplace.
Not surprisingly, these restrictions pose challenges for companies. In addition to situations where professionals try to escape, we can think of health issues, food and relationships with colleagues and leaders as obvious examples that we need to point out.
In any case, resuming production strength is important for Apple, as the product is on the rise, with a high level of demand. Failing to deliver 30% of the expected amount would be a blow to the company’s fiscal year.