- Apple Inc AAPL key supplier Hon Hai Precision Industry Co Ltd HNHPF Foxconn Technology Grouphas brought the largest iPhone factory to about 90% expected peak performance.
- The update implied that Apple’s largest manufacturing partner had secured enough workers despite a resurgence of Covid and recent workforce uproar Bloomberg reports.
- Foxconn gave out bonuses to recruit new employees and persuade those who were still there to stay.
- Foxconn reportedly aimed for the plant to resume overall production from late December to early January while remaining cautious about the pandemic resurgence, Reuters reports.
- The Foxconn plant in the central Chinese city of Zhengzhou employs 200,000 people, which is about the average workforce, a local newspaper reported, citing Foxconn manager Vic Wang.
- As of December 30, the plant was delivered at 90% of the peak capacity forecast early last year.
- Foxconn’s rapid rise bodes well for the production of Apple’s marquee product as it prepares for the Lunar New Year shopping season.
- A nationwide Covid flare-up to Beijing abruptly dropped most of the Covid-Zero era curbs had clouded prospects for manufacturers like Foxconn, who needed armies of workers to keep factories running.
- The latest outbreak followed weeks of turmoil at the Zhengzhou plant known as iPhone City, which makes the vast majority of high-end iPhone 14 Pro and Pro Max devices.
- The phenomenal disruption, in turn, fueled concerns about the iPhone Production over the critical holiday period.
- Price promotion: AAPL shares closed up 0.25% at $129.93 on Friday.
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