UPDATE 2-Apple supplier Foxconn says working to resume China production as soon as possible

(Adds more details from the statement)

TAIPEI, Nov 7 (Reuters) – Taiwan’s Foxconn, Apple Inc’s biggest iPhone maker, said on Monday it was working to resume full production as soon as possible at a large plant in Zhengzhou, China. , which has been affected by the prevention of COVID-19, and has been revised. Its fourth-quarter outlook below.

China ordered an industrial park that houses an iPhone factory owned by Foxconn to enter a seven-day lockdown on Wednesday, in a move that will increase pressure on Apple’s supplier as It is fighting to end workers’ discontent at the base.

The Zhengzhou Airport Economy Zone in central China said it would immediately implement “quiet management” measures, including barring all residents from going out and allowing only approved vehicles on the roads within the zone.

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Foxconn, the world’s largest contract electronics maker, said in a statement that the provincial government of Hainan, where Zhengzhou is located, “has made it clear that it will fully support Foxconn in Hainan as always”.

“Foxconn is now working with the government in a concerted effort to end the pandemic and resume production at full capacity as soon as possible.”

In a statement released at the same time, Apple said it expects shipments of the iPhone 14 Pro and iPhone Pro Max to be lower than previously expected as COVID-19 restrictions temporarily disrupt production in Zhengzhou.

Apple’s new iPhone went on sale on September 14.

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Foxconn, formally Hon Hai Precision Industry Co Ltd, is Apple’s largest iPhone manufacturer, accounting for 70% of global iPhone shipments. It makes most of its phones at the Zhengzhou plant where it employs about 200,000 people, although it has other smaller production sites in India and southern China.

After earlier guiding for “cautious optimism” in the fourth quarter, Foxconn said it would “revise” its outlook in light of the events in Zhengzhou.

However, the firm said October sales rose 40.97 percent year-on-year, a record high for the same period, but down 5.56 percent from the previous month.

“Revenues increased in all four major product segments, benefiting from new product launches in October, stable demand for major products, and strong demand in the server market,” he said, adding that computing products, smart consumer electronics products, and cloud Referring to said. and networking products.

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The company added that computing products, smart consumer electronics products, and cloud and networking products showed double-digit growth last month, compared to the same period last year.

The fourth quarter is traditionally a hot season for Taiwanese tech companies as they race to deliver cellphones, tablets and other electronics to Western markets during the year-end holidays.

Foxconn released third quarter earnings on November 10. (Reporting by Ben Blanchard; Editing by Daniel Wallace)


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