While Apple and its suppliers have been working for years to reduce the company’s dependence on China as a manufacturing hub, progress has been painfully slow – especially for the iPhone…
iPhone production crisis
While Apple is expanding production in other countries, recent estimates show that 95% of total iPhone supply still comes from China — and about 80% of all iPhones are made in a single factory in Zhengzhou, also known as iPhone City.
COVID-19 outbreak in that factory Significantly affected production. some workers Leave the plant to go homeEither out of fear of injury or out of chaos. Foxconn fought again Offer big rewardsbut as the infection spread, the plant was later Put on lockdown for a week This made it operate at a significantly lower power.
The situation was serious enough Apple has issued a warning about the limited availability of iPhone 14 ProFoxconn warned that a file Consumer electronics revenue will decline In what was likely to be a record quarter.
Foxconn quadrupled the Indian workforce
I told sources within the Indian government Reuters of Foxconn plans.
Apple supplier Foxconn plans to quadruple the workforce at its iPhone plant in India over two years, two government officials familiar with the matter said, citing production adjustments as it faces disruptions in China. […]
The sources, who asked not to be named because the discussions are private, said Taiwan-based Foxconn now plans to increase the workforce at its plant in southern India to 70,000 by adding an additional 53,000 workers over the next two years.
A very long time scale means it won’t help with the current crisis, but increasing the Indian workforce to 70,000 workers would make it about a third of the size of the iPhone City’s base factory. Create this kind of ability Apple must make Significantly more flexible For future issues in China.
The expansion of iPhone assembly in India has accelerated recently. Initial production was limited to the original iPhone SE, but the factory has been steadily updated to be able to make more modern and advanced models.
This year, Foxconn India began manufacturing iPhone 14 models within weeks of launching production in China, and assembly next year iPhone 15 is expected to launch simultaneously in both countries.
Meanwhile, China is adhering to its COVID Zero policy – which sees a citywide lockdown in response to a small number of infections – but was introduced today The first modest softening of her approach.
China on Friday eased some of its coronavirus restrictions, including shortening the two-day quarantine period for close contacts of cases and incoming travelers and eliminating a penalty for airlines bringing infected passengers.
The new rules were among 20 measures examined at the first meeting of the new top leadership body of the ruling Communist Party on Thursday, amid a fresh push to improve and improve the coronavirus control policies.
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