Apple has finally confirmed that the Foxconn assembly facility in Zhengzhou, China responsible for iPhone 14 Pro production has reduced its output following a regional COVID-19 outbreak.
Analyst Ming-Chi Kuo claims that Foxconn is to step up its iPhone production in India, specifically to overcome delays caused by China's COVID lockdowns.
China has ordered a seven-day lockdown in Zhengzhou, home to a major Foxconn factory, after a COVID-19 outbreak swept through the industrial park.
In the wake of reports of employees fleeing Foxconn's biggest iPhone factory, the assembly partner has significantly raised pay for staff who are choosing to accept the closed-loop measures during a COVID outbreak.
Workers at Foxconn's major iPhone factory in Zhengzhou, China are choosing to leave the facility currently operating as a closed-loop during a COVID outbreak, with social media showing employees traveling home instead of staying.
A COVID-19 outbreak at Foxconn's main iPhone assembly plant has forced it to change plans to seasonally reduce production, postponing the slowdown while it deals with closed-loop production changes.
Market analysis shows the biggest smartphone vendors in China saw steep year-over-year declines in Q3 2022, while Apple's iPhone shipments grew by 36%.
Despite enhanced precautions and frequent screening for COVID prevention, Foxconn's main iPhone production facility is dealing with an outbreak.
Following increased US export controls against working with Chinese companies, Apple has halted plans to use YMTC chips in the iPhone.
Right after the company recorded record profits, mostly generated by iPhone processor production, Apple chip partner TSMC has also announced that it has been granted an exemption from new US laws prohibiting high-tech manufacturing gear exports to China.
Some US officials suggested that destroying TSMC facilities would be more desirable than China getting access to semiconductor production, but Taiwanese officials state that won't be necessary.
One of Apple's RAM suppliers, South Korea's SK Hynix, has been given a year's reprieve from new US rules over the export of advanced processors to China.
Apple's efforts to shift production out of China will focus on shifting more global iPhone orders to India and MacBook manufacturing to Thailand, according to Ming-Chi Kuo.
Apple is reportedly asking suppliers to move some AirPods and Beats earbuds manufacturing away from China, and to India.
A new report estimates that it would take Apple eight years to move even as little as ten percent of its production away from China.
Apple made a point of saying it was keeping the iPhone 14 range priced the same as the iPhone 13 one, but it turns out that was only for the US and China.
The data center Apple uses for iCloud in China has barred employees from leaving for a week, because of a COVID lockdown.
Apple has given a rare speech at a global AI gathering, with vice president Ge Yue choosing to concentrate on Machine Learning in accessibility features.
Six years after Apple invested $1 billion in China's Uber-like Didi Global company, its representative has quietly left the board.
The hottest conditions in China for more than 60 years caused authorities to close down factories to conserve electricity, but now Foxconn has been able to resume iPad production.
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Malcolm Owen
William Gallagher
Andrew Orr
Wesley Hilliard
