 |
| Photo by Armand Valendez from Pexels |
Production of the Apple iPhone 12 (AAPL.O) in the Foxconn (2317.TW) factory in India has dropped by more than 50% as workers infected with COVID-19 have had to vacate their posts.
The Foxconn Center in the southern region of Tamil Nadu produces iPhones specifically for India, the world’s smartphone market No.
Tamil Nadu is one of the worst hit states in the second wave of coronavirus that has plagued India. Officials have imposed a state shutdown since Monday, shutting down public transport and closed shops, in an effort to slow down the spread of the disease.
More than 100 Foxconn government employees have been tested for COVID-19 and the company has been forced to shut down its factory in the capital, Chennai, until the end of May, one source said.
"Employees are only allowed to leave but not to enter the center from yesterday," he said. "Only a small portion of the product is stored."
More than 50% of the plant's energy was cut off, both sources said it declined to be identified as it was not authorized to speak to the media.
They did not specify the capacity of the plant and it was unclear how many staff members were in the facility, which provides staff accommodation.
Taipei-based Foxconn, the world's largest contractor and major supplier to Apple, said a small number of employees at one of its facilities in India were tested with COVID-19 and the company provided them with support, including medical assistance.
"Foxconn puts the health and safety of our employees at the forefront and that is why we have been working closely with local government and public health authorities in India to address the challenges facing all companies in addressing the COVID-19 Crisis," a statement said.
Foxconn declined to comment on industry outsourcing. Apple did not immediately respond to a request for comment.
India has benefited from Apple's move to move some production facilities from China to other markets as it embarks on a trade war between Washington and Beijing, Apple announced in March that it has launched an iPhone 12 conference in India.
While Apple's share of India's largest telecommunications market is small, CEO Tim Cook said in January that Indian business doubled in the December quarter compared to last year, aided by the launch of an online store.
Foxconn also said strong smartphone sales had a stronger impact than expected in the fourth quarter among home-based operations.
Market research company Canalys said growth in India surpassed the first quarter, with Apple sending more than a million iPhones. The demand for the iPhone 12 was backed by a local conference and attractive financial contributions, Canalys said.
COVID-19 PROBLEM
However, the outlook is bleak due to the coronavirus epidemic in India, where COVID-19 cases and deaths have risen sharply in recent weeks. The country has recorded an estimated 22.66 million infections and more than 246,000 deaths, experts say the actual figures are much higher.
Foxconn is not the only manufacturer involved. Nokia and Chinese manufacturers of OPPO smartphones last year suspended production at Indian factories after workers were tested for COVID-19.
Taipei-based technology company TrendForce on Monday reduced its forecast for smartphone production growth by 8.5% from 9.4%, citing the impact of the coronavirus in India on major retailers including Samsung (005930.KS) and Apple.
"Smartphone models are therefore expected to monitor the list of all devices and adjust their production plans accordingly," TrendForce said in a report, adding that it could revise the forecast if the outbreak continued to hit local product and sell for the second quarter.
Posts
