Tightening COVID-19 restrictions in China could force down production of Apple Inc’s iPhone at one of the world’s largest factories by as much as 30 percent in November, Reuters reported on Monday quoting a source with direct knowledge of the matter.
The source who declined to be identified as the information was private, according to Reuters, also said Apple manufacturing partner Foxconn, formally Hon Hai Precision Industry Co Ltd, is working to boost production at another factory in Shenzhen city to make up for the shortfall.
Foxconn’s main Zhengzhou plant in central China, which employs about 200,000 people, was hit by the stringent curbs after an outbreak at the factory, which led the city of about 10 million people locked down as a result.
It’s not clear how many cases of the virus have been identified, but the outbreak forced staff to lock down at the workplace, which has reportedly caused unrest and even led some employees fleeing the site at weekend, with some jumping a fence outside the plant.
The possible impact on production comes amid a traditionally busy time for electronics makers ahead of the year-end holiday season, which is also a prime time for vendors such as Apple.
Apple did not respond to a request for comment.
Foxconn is Apple’s biggest iPhone maker, producing 70 percent of iPhone shipments globally, which in turn makes up 45 percent of the Taiwanese firm’s revenue, analysts at Taipei-based Fubon Research said this month.