The coronavirus outbreak has made an impact on Foxconn's finances with the iPhone assembly partner enduring its biggest year-on-year drop in revenue for a month in a seven-year period due to the virus affecting its production pipeline.
Apple supplier Foxconn says that it will return to regular operation by the end of the month after the closures caused by the coronavirus, and also that over half of its usual seasonal workers have already returned to work.
The COVID-19 outbreak has made it clear just how dependent Apple is on its supply chain in China, despite efforts to diversify where its products are made.
In an effort to combat low employee turnout, Foxconn has begun providing incentives for workers to return to assembly plants in Shenzhen and Chengzhou, China.
At the same time that Apple takes tentative steps to reopen all of its retail stores in China, the company's main iPhone assembler Foxconn has announced that it will be "cautiously" resuming production in its main iPhone manufacturing plants.
Apple's coronavirus-related supply chain issues will be a problem for the company long into April, a report claims, as despite efforts from assembly partners, supplies of the iPhone may be constrained for some time to come.
Foxconn on Wednesday invalidated a report that claimed the company plans to reopen a significant portion of its Chinese production force in February, though the firm failed to set the record straight with an official timeline.
The coronavirus continues to spread through China, leaving many businesses and factories closed throughout affected areas. Here's how Apple and Foxconn have been impacted so far.
Apple partner Foxconn is reportedly working to return its China-based production capabilities to half strength by the end of February, a move that would bring vital supply lines back to life after being shut down due to the coronavirus outbreak.
Apple supplier Foxconn is said to have reopened Zhenghzou, its most critical iPhone production plant, but only a tenth of the workforce has returned.
Research into both the manufacturing and retail impact of the outbreak claim that closed stores and delayed launches will reduce smartphone sales in China by as much as 50% for the first quarter.
Apple analyst Ming-Chi Kuo sees significant uncertainty surrounding iPhone production in China because of the ongoing coronavirus, and has detailed what he is seeing so far at Apple assemblers Foxconn and Pegatron.
The local authorities of Shenzhen have denied reports it is blocking Foxconn from reopening on February 10 over fears of spreading the coronavirus further, claiming it is still working with the Apple assembly partner on how to enable production to proceed while keeping workers safe.
Apple assembly partner Foxconn has been told by Chinese authorities it cannot open its production facilities in China due to the coronavirus outbreak, due to the "high risks" of infection determined following an inspection by public health experts.
Key Apple supplier Foxconn has told its Shenzhen staff not to return to work after the current and extended holiday just yet, because of continuing coronavirus concerns.
As a result of the Coronavirus, Foxconn will quarantine returning workers for up to two weeks — and admits that it won't quite be able to assemble as many devices — including iPhones — in the quarter.
Production of the iPhone could be disrupted by the coronavirus outbreak if things get much worse, with Apple assembly partner Foxconn reportedly halting the majority of its production in China until February 10.
Apple manufacturing partner Foxconn on Tuesday said provisions have been made to meet production obligations in China as the region faces a deadly coronavirus outbreak, a situation the iPhone maker is closely monitoring.
As the 2019 Novel Coronavirus continues to spread across China, Apple will see some impact from the outbreak — but to what extent various aspects of its business will be impacted remains to be seen.
Foxconn will be getting its Wisconsin factory up and running in 2020, company chief Terry Gou has promised, insisting the Apple assembly partner will start mass production at the troubled facility at some point this year, despite its slow progress.
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