Apple Stock
Apple Stock dropped as Foxconn, also known as Hon Hai Precision (OTCPK:HNHPF), reported on Monday that November revenue dropped significantly as the business continues to contend with COVID-19 outbreaks in China and worker protests at its facility in Zhengzhou, which manufactures a sizable number of Apple (NASDAQ:AAPL) iPhones.
According to Foxconn, revenue for November was $14.7 billion, a decrease of 29% from the previous month and 11.4% from the same time last year. In a statement, Foxconn explained the output reduction as the result of “gradually approaching off-peak seasonality and a percentage of shipments being disrupted by the outbreak in Zhengzhou.”
The company stated that the month-over-month reduction “was generally in line with the company’s expectations.” Foxconn stated that the COVID-19 epidemic has been “kept under control,” with November being the most afflicted month. The business has relocated manufacturing to other factories and hired new staff members.
Foxconn continued by stating that it is “gradually” returning to normal production levels and that the fourth-quarter expectation would be “approximately in line with market consensus.” Separately, on Monday, Reuters cited a source at Foxconn and said that full production at the Zhengzhou plant might not start until later this month or early January.
According to a report from last week, despite the city’s removal of COVID-19 regulations, Foxconn’s production facility in Zhengzhou, China, would continue to run on a closed-loop system.
According to reports, Foxconn’s largest iPhone assembly facility is in Zhengzhou. To encourage more individuals to apply for jobs there, Foxconn has offered bonuses of 1,000 yuan ($141.11) to workers who suggest others who do.
Apple earlier issued a warning that COVID-19 limits in the nation with the highest population will result in fewer shipments of the iPhone 14 than initially anticipated.
In response to COVID-19-related problems as well as escalating geopolitical tensions between China and the U.S., Cupertino, California-based Apple (NASDAQ:AAPL) is planning to continue relocating its supply chain out of Asia, but analysts say it won’t happen overnight.
Wedbush Securities analyst Dan Ives recently said in a study that “the move out of China will not be easy and will have obvious logistical, engineering, and infrastructure problems as the aggressive move to India and Vietnam now begin with the Apple ecosystem informed.”
Featured Image: Unsplash @ Laurenz Heymann
Author Jowi Kwasu 
