China’s COVID-19 lockdown: Apple supply chain disrupted after panicked workers flee Foxconn factory in Zhengzhou (Watch video)

Hong Kong, October 31: Apple’s supply chain faces another set of challenges in China as panicked workers at the Foxconn factory in Zhengzhou, which makes the new iPhone 14 series, walk out amid renewed Covid fears, media reported on Monday.

Fearing a Covid lockdown, workers were seen fleeing the factory on foot and walking across fields and along the highway as public transport was suspended as part of Covid-19 controls, The South China Morning Post reported. China lockdown: Masses of migrant workers flee iPhone factory in coronavirus-hit Zhengzhou, videos go viral.

About 300,000 workers are employed at the plant in the provincial capital of Henan. “Neither Foxconn, also known as Hon Hai Technology Group, nor the Zhengzhou government have disclosed how many workers are leaving or are under quarantine,” the report said.

The development could slow production of Apple’s flagship devices in the coming months. According to Foxconn, it has set up seven pick-up points for workers leaving the campus. “Local authorities in other cities in Henan province, where many Foxconn workers come from, also rushed to arrange buses to take people home,” the report said.

Watch the video here:

Prominent Apple analyst Ming-Chi Kuo tweeted that more than 10 percent of global iPhone production capacity is currently affected as Foxconn’s Zhengzhou factory suddenly went into closed loop production without warning. COVID-19 in China: Shanghai district orders mass testing for coronavirus, lockdown.

However, Kuo said, this situation has not changed the current supply forecast in the iPhone supply chain. “Foxconn’s production capacity will gradually improve over the next few weeks, and this should have a limited impact on iPhone shipments in the fourth quarter,” analysts said. Foxconn, however, denied rumors that several workers had contracted Covid-19. The city of Zhengzhou imposed a partial lockdown for its 10 million residents.

Apple has previously faced supply chain disruptions as a result of China’s strict “zero COVID” policy, most notably during a two-month lockdown at its key manufacturing hub in Shanghai earlier this year.

(The above story first appeared on LatestLY on 31 October 2022 at 16:04 IST. For more news and updates on politics, world, sports, entertainment and lifestyle, visit our website

Source link