Foxconn sees COVID-hit China plant back at full output in late Dec.-early Jan
Apple supplier Foxconn 2317.TW expects its COVID-hit Zhengzhou plant in China to resume full production around late December to early January, a Foxconn source said on Monday, after worker unrest last month disrupted the world's biggest iPhone factory.
The world's largest contract electronics maker later on Monday said revenue in November fell 11.4% year on year reflecting production problems related to COVID-19 controls at the major iPhone factory.
"At present, the overall epidemic situation has been brought under control with November being the most affected period," the company said in a statement, adding it has started to recruit new employees and was gradually "restoring production capacity to normal."
Foxconn said November revenue for its smart consumer electronics business, which includes smartphones, declined year on year partly due to a portion of shipments being impacted by production disruptions in Zhengzhou. It did not elaborate.
The Zhengzhou plant has been grappling with strict COVID-19 restrictions that have fuelled discontent among workers over conditions at the factory. Production of the Apple AAPL. O device was disrupted ahead of Christmas and January's Lunar New Year holidays, with many workers either having to isolate to combat the spread of the virus or fleeing the plant.
Following the November unrest, that saw workers clash with security personnel, Foxconn could have seen more than 30% of the Zhengzhou site's November production affected, Reuters reported last month citing a source familiar with the matter. Foxconn hasn't disclosed details of the impact of the disruption on its production plans or finances.
Analysts say Foxconn assembles around 70% of iPhones, and the Zhengzhou plant produces the majority of its premium models including iPhone 14 Pro.
"The capacity is now being gradually resumed" with new staff hiring underway, said the person with direct knowledge of the matter. The person declined to the named as the information was private.
"If the recruitment goes smoothly, it could take around three to four weeks to resume full production," the person said, pointing to a period around late December to early January.
Foxconn and the local government are working hard on the recruitment drive but many uncertainties remain, according to the source. The person cited "fears" some workers might have about working for the company after the plant was hit by protests last month that sometimes turned violent.
"We are firing on all cylinders on the recruitment," the person said.
Foxconn declined to comment.
A second Foxconn source familiar with the matter said the company is hoping to resume full production "as soon as possible" but was not able to give a timeline.
"The situation has stabilized," the person said, referring to the protests and the government's easing of COVID restrictions. "The local government is actively helping with the resumption."
The Taiwanese company said last month it expects a slight decline in fourth-quarter revenues year-on-year for its smart consumer electronics business and significant growth for cloud and network products.
Foxconn said on Monday its overall revenue in the fourth quarter was expected to be "roughly in line with market consensus," without elaborating. It did not offer a fresh outlook for its various business sectors.
The company said last month that revenue in the final three months of this year would be flattish, and that it has a relatively conservative outlook for 2023. Read full story
Foxconn shares closed flat, in line with the broader market which ended up 0.1%.
Worker unrest strikes major iPhone suppliers' revenue.
(Reporting by Yimou Lee and Ben Blanchard; editing by Kenneth Maxwell and Jason Neely)
opinion | Before you do your taxes, take note of these tax credits and deductions you may not have known about
Many Canadians are experiencing strains caused by the increased cost of living and inflation. In his exclusive column for CTVNews.ca, contributor Christopher Liew shares some of the top credits and deductions that you may be able to claim on your income tax return to help you save money.
opinion | How much rent can you afford?
Many Canadians have continued to see an increase in their rental rates in 2023. In an column on CTVNews.ca, personal finance contributor Christopher Liew explains how to calculate how much rent you can afford.
Canadians now believe they need $1.7 million in savings in order to retire, a 20 per cent increase from 2020, according to a new BMO survey. The eye-watering figure is the largest sum since BMO first started surveying Canadians about their retirement expectations 13 years ago.
With the spring break travel season approaching, those looking to flee the cold, wet Canadian snow for sunnier skies will likely be met with a hefty price tag for their getaway, with inflation and increased demand pushing costs up.
When selling a home, Canadians may be exempted from paying capital gains tax on a residential property -- if it's their principal residence. On CTVNews.ca, personal finance contributor Christopher Liew explains what's determined as a principal residence, and what properties are eligible for the exemption.
The Bank of Canada hiked its key interest rate by a quarter of a percentage point Wednesday, bringing it to 4.5 per cent. Here's a look at what the rate means, how analysts are interpreting it and what it could mean for consumers.
The federal government's latest TFSA contribution limit increase took effect as of January 1, 2023. Personal finance contributor Christopher Liew outlines how the government’s most recent TFSA contribution limit increase affects you and how to make the most of it.
Finding an affordable place to live in the territories, where housing has long been a challenge, is getting even harder, the Canada Mortgage and Housing Corporation suggested in a report released in December. In Yellowknife, the report said, the growing senior population, urbanization and strong labour market has pressured the housing supply.