iPhone production at Foxconn’s main plant in Zhengzhou may resume at full capacity after a series of setbacks that included the closure of the facility due to a rise in COVID-19 cases and protests. These production disruptions consequently forced Apple to come out with a press release stating that iPhone 14 Pro and iPhone 14 Pro Max would be available in limited quantities during the holiday season. Now, Apple’s largest iPhone assembler has come out with a statement, claiming that production will be in full swing starting late December.
Foxconn Is Working Closely With the Government to Resume Hiring and Ensuring That iPhone Production Is Not Affected
With November being the most affected period, Reuters states that both Foxconn and the Chinese government are working together to get capacity running at full tilt. Assuming that potential workers do not fear returning to the plant, iPhone production could reach maximum capacity in a few months. One individual who knew what was going on provided the following statement on the condition of anonymity.
“The capacity is now being gradually resumed. If the recruitment goes smoothly, it could take around three to four weeks to resume full production. We are firing on all cylinders on the recruitment.”
Behind the curtain, it is possible the Chinese government is pressing Foxconn to get the situation under control as it does not wish for Apple and other technology giants in the U.S. to seek trade dependency elsewhere. Also, Foxconn’s Zhengzhou plant is the largest iPhone production assembly anywhere in the world right now, churning out 70 percent of the world’s iPhones and employing around 200,000 personnel.
FOXCONN EXPECTS FULL PRODUCTION AT COVID-HIT CHINA APPLE $AAPL IPHONE PLANT LATE DECEMBER TO EARLY JANUARY – Reuters
— StockMKTNewz – Evan (@StockMKTNewz) December 5, 2022
For Apple, it makes sense to continue relying on Foxconn’s Zhengzhou plant due to the sheer volume, but with the U.S. government slamming trade bans on China, it might become difficult for Apple to retain its business in the region. Recently, we reported that YMTC could no longer supply Apple with iPhone memory chips due to tighter export controls.
YMTC is already being investigated by the U.S. Commerce Department as it broke the law, violating export controls by selling to Huawei, a phone maker that has already experienced one of the worst trading sanctions for a tech firm. Apple has attempted to cut its losses by giving Pegatron and Luxshare 10 percent of Foxconn’s orders to ship the iPhone 14 Pro and iPhone 14 Pro Max, but even then, the earliest that this shipment may arrive is in late December.
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