Foxconn the largest manufacturer of Apple Inc, will be suspending production of iPhones temporarily at its Shenzhen facility. This decision has been taken in lieu of growing COVID-19 cases in the technology hub city.
This Taiwanese manufacturer is also called Hon Hai Precision Industry Co, its Chinese headquarters is in Shenzhen and an important manufacturing unit is in Guanlan. Foxconn will be, for a while suspending its production at this particular site and will distribute the volume to other sites to reduce the impact of COVID-19 restrictions on production.
It is still not clear how long the facility will be shut. The Chinese government has announced non-essential companies and businesses to shut shop in Shenzhen till March 20th.
This decision will be hard-hitting for Foxconn as it makes several models for Apple Inc., as usually the sales increase typically in the first quarter of any fiscal year, which is the quarter right after holiday season peak time.
Foxconn’s shares fell as much as 1% in Taipei on Monday morning. Foxconn is Apple Inc.’s smartphone manufacturer and this activity is carried out at a facility in the central city of Zhengzhou and so is called the iPhone City. When compared to the Zhengzhou site the Guanlan site is at a smaller scale.
Foxconn was one of the 1st companies to take the coronavirus blow in 2020, and as a precaution, it requested its employees to stay away from the headquarters at Shenzhen. The Chinese government has declared a lockdown which affects close to 17.5 million people of Shenzhen for a week on Sunday. This is a temporary measure to stop the COVID-19 spread.
