Analysis: if Foxconns factory production is delayed, iPhone production will be severely damaged

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 Analysis: if Foxconns factory production is delayed, iPhone production will be severely damaged


Foxconn, which makes smartphones for apple and other brands, has stopped almost all production in China after companies were told it would be shut down at least until February 10, the source said, adding that extending the shut-down could disrupt delivery arrangements for customers, including apple.

Foxconn, the worlds largest OEM electronics maker, did not immediately respond to requests for comment, while Apple declined to comment.

The source said the impact on Foxconn so far has been quite small because the company is using factories in Vietnam, India and Mexico to fill the gap. He added that if the factory worked overtime after the ban, the company would be able to make up for the delayed production.

The Foxconn plant in Suzhou announced it would close at least until February 8, the Shanghai plant until February 9, and the Dongguan plant was told it could not start before February 10.

Due to the outbreak of new coronavirus, the World Health Organization (who) has announced that the world has entered the public health emergency of international concern.

What we are worried about is that if we postpone the production for another week, or even another month, it will have a huge impact and will definitely have an impact on Apples product production, the source said. The more difficult question is whether we can resume production on February 10, depending on the instructions of the government.

According to an internal memo, Foxconn has asked employees and customers in Hubei Province, China, not to return to the factory and told workers to report their health status to the manager every day. The company also said that employees who comply with the rules will be paid as usual, and otherwise punished, but it did not elaborate. Foxconn also issued a notice that the company has set up a hotline to encourage employees to report those who violate the rules and provide a bonus of 200 yuan. According to Morningstar analyst don yew, the impact on Foxconns supply chain is limited, saying that its four subsidiaries in Hubei accounted for only 1.8% of the companys total revenue in 2018, and that suppliers such as apple maintain a diversified supply chain. However, the analyst said the spread of the coronavirus to major smartphone manufacturing centers such as Guangdong could lead them to revise financial estimates for companies including Foxconn. (small) source of this article: responsible editor of Netease technology report: Wang Fengzhi, nt2541

According to an internal memo, Foxconn has asked employees and customers in Hubei Province, China, not to return to the factory and told workers to report their health status to the manager every day. The company also said that employees who comply with the rules will be paid as usual, and otherwise punished, but it did not elaborate.

According to Morningstar analyst don yew, the impact on Foxconns supply chain is limited, saying that its four subsidiaries in Hubei accounted for only 1.8% of the companys total revenue in 2018, and that suppliers such as apple maintain a diversified supply chain.

However, the analyst said the spread of the coronavirus to major smartphone manufacturing centers such as Guangdong could lead them to revise financial estimates for companies including Foxconn. (small)