In September, Apple launched its latest iPhone 14 and iPhone 14 Pro models with a boatload of front-facing changes. While the standard models feature little to no changes compared to the previous year, the iPhone 14 Pro models have better camera hardware and a new display equipped with Always-On technology. Amidst heavy demand for the new iPhone 14 series, Apple warned users of limited availability due to disruptions caused by COVID-19. Now, Foxconn has issued a warning for itself, highlighting a hit on its revenue for the current quarter.
Foxconn Raises COVID-19 Concerns as "Revenue Growth Will be Flat" For The Current Quarter
Previously, Foxconn confirmed that the most prominent iPhone plant in Zhengzhou, China which handles almost 80 percent of the total iPhone production on a global scale was affected heavily due to the COVID-19 outbreak. Apple did not sweat much on the scenario and called it "controllable". However, the situation inside the plant was much direr and workers had to leave for home despite Foxconn's attempts to lure them with bonuses. Ultimately, this led Foxconn to announce a lockdown for an entire week.
Foxconn's plant in Zhengzhou is crucial for Apple as it is responsible for manufacturing a major chunk of the total iPhone demand. Today, Bloomberg reports that Foxconn's current quarter has taken a massive hit, stating that the "revenue growth will be flat for the current three-month time period."
Hon Hai Precision Industry Co., maker of most of the world’s iPhones, warned consumer electronics revenue will fall this quarter as it grapples with a Covid outbreak that walled off its main production base in central China.
The company, known also as Foxconn, reported earnings that missed estimates for the third quarter and said revenue growth will be flat for the current three-month period. Hon Hai is now trying to resume full production after a coronavirus flareup in October triggered a lockdown last week around its biggest factory in Zhengzhou, severely curtailing the flow of goods and people it needs to sustain iPhone assembly.
Amidst iPhone production concerns, the Chinese government is facing growing economic and political pressure for the termination of its zero-COVID-19 policy. The policy aims to end COVID-19 with city-wide lockdowns throughout the country. We will keep you guys updated with the latest, so be sure to stick around for more details.
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News Source: Bloomberg
