China COVID-19 Lockdowns Smash iPhone Production

Apple announced recently that shipments of the new iPhone 14 and iPhone 14 Pro will be delayed due to covid lockdowns across China. Foxconn, Apple’s leading manufacturer of iPhones, has reported significant unrest throughout its 200,000-person complex in central China. The company reported on what they call a “worker exodus” in which numerous employees are attempting to escape the plant in hopes to avoid a covid outbreak that would result in being locked within factory limits under poor living conditions.

Some areas of the plant have already reported a 50% loss of workers with a combination of people fleeing or being placed in quarantine. Other areas are even worse with one particular assembly line that normally consists of 20 workers being recently reduced to 3.

Foxconn has stated that they are attempting to move much of the iPhone production to other plants outside of Zhengzhou, however, this may prove to be more difficult than anticipated because the Zhengzhou plant accounts for nearly 80% of the company’s iPhone production.

Source: Financial Times