Site icon Go Trading Asia

Apple to Expect Low Production as COVID Strikes India

Photo by Denis Cherkashin on Unsplash

Apple iPhone 12 production has more than halved as employees of Foxconn have contracted a number of COVID-19. Reuters reported (5/11), citing multiple sources.

The Foxconn facility is located in Tamil Nadu, southern India, one of the hardest hit areas in the country’s recent Covid-19 spread. Government officials have been closing public transportation and shops in the area since the previous day.

According to sources, more than 100 Foxconn employees in the state tested positive for Covid-19. And the company imposed a ban on the plant by the end of May.

Still no comments from Apple concerning Foxconn plant in India

“Employees are only allowed to leave and are not allowed to enter from yesterday,” they said. “This has reduced the factory’s production capacity by more than 50 percent.”

Foxconn also said a small number of employees at a facility in India tested positive for Covid-19. And they have been actively providing medical assistance.

“We put the health and safety of our employees first and we have been working closely with local governments and public health authorities in India to deal with the Covid-19 crisis,” the company said.

However, Foxconn declined to comment on plant output or specific staffing levels. Reuters said Apple did not respond to requests for comment.

Apple has benefited from moving some of its production areas from China to other markets including India. However, in recent weeks, the number of people infected with Covid-19 and deaths has soared at record rates. Which then leads to a national crisis.

Foxconn is not the only place where Covid-19 hits hard. Nokia and Chinese smartphone manufacturer OPPO also suspended production at its Indian plant last year as workers tested positive for Covid-19.

Citing India’s Covid-19 crisis, TrendForce, a Taiwanese market research company, lowered its global smartphone growth outlook for companies including Samsung and Apple from 9.4% to 8.5%.

Exit mobile version