Workers in Apple's largest iPhone assembly factory in China are scaling fence and fleeing amid a Covid-19 outbreak in Zhengzhou and the country’s stringent zero-Covid policy.
Workers at the plant fear lockdown following the detection of over 150 Covid cases in the Henan province of China. The workers were reportedly forced under a lockdown in the Foxconn factory after a Covid outbreak.
Foxconn has about 200,000 workers at its Zhengzhou complex and has not disclosed the number of infected workers, but said on Sunday that it would not stop workers from leaving.
In a statement released on Thursday, Foxconn said that only "a small number of employees" had been affected and production on the Zhengzhou campus remained "relatively stable".
As per media reports, Zhengzhou, capital of Henan Province, reported 167 locally transmitted Covid-19 cases in the past seven days.
Late on Saturday, cities near Zhengzhou, urged Foxconn workers to report to local authorities in advance before heading home, travel “point-to-point” in pre-arranged vehicles, and quarantine on arrival.
With more than 95 per cent of iPhones made in China, the manufacturing disruptions reflect investor concerns about Apple's supply chain risk in various parts of the world, including India, which is already seeing a shortage of iPhone 14 in the market.
Even though Apple has sought to diversify its supply chain, including starting to assemble iPhone 14 in India, the company still relies massively on China for most of its iPhone production.
iPhones production could fall 30%
Amid China’s zero-Covid policy which includes constant lockdowns, quarantines, and widespread testing
Reuters reported the production of Apple iPhones could dip by as much as 30% next month due to tightening Covid-19 curbs in China.
Foxconn is Apple's biggest iPhone maker and it is responsible for producing 70% of iPhone shipments globally. This factory generates 45% of the Taiwanese firm's revenue, as per Taipei-based Fubon Research.
