Author: Tronserve admin
Friday 30th July 2021 02:32 AM
Foxconn Plans to Resume Full Production This Month
Apple Inc.’s supplier companies in China are opening their doors again this month, according to various sources. Bloomberg news reports that Hon Hai Precision Industry Co. has set a time table to return to full production schedules before the end of March. Reopened factories have recently struggled to produce at capacity, due to quarantines and travel bans affecting staff levels.
In an interview with Fox Business, CEO of Apple Tim Cook apparently acknowledged Foxconn’s push to resume full production. “We have key components coming from the United States, we have key parts that are in China, and so forth,” Cook said. “When you look at the parts that are done in China, we have reopened factories.”
In a stock exchange filing, Hon Hai Precision Corp.—also known as Foxconn—confirmed that their factories would return to “full seasonal capacity by the end of March.” Foxconn is one of a number of Apple suppliers in China impacted by the outbreak.
On February 17, Apple revised its quarterly guidance downward in light of the outbreak. According to the Cupertino, California-based tech company, the COVID-19 has hurt its bottom line specifically with regards to Apple’s supply of its iconic iPhone. “While our iPhone manufacturing partner sites are located outside the Hubei province—and while all of these facilities have reopened—they are ramping up more slowly than we had anticipated,” the update read.
Apple also asserted that the health of factory workers making the iPhones “is our paramount priority” while acknowledging the supply shortages would affect worldwide revenue.
According to the Chinese government, the number of cases in China has fallen in recent weeks. On March 3, they reported 125 new cases—the lowest number of new cases since January.