Thursday saw an almost 3% increase in Apple stock (NASDAQ:AAPL) as the tech giant, and its manufacturing partners sought to increase the supply of the crucial iPhone. As China has loosened additional COVID-19 regulations, the production facility for Foxconn, also known as Hon Hai Precision (OTCPK:HNHPF), in Zhengzhou, China, is now estimated to be running at about 70% of its capacity levels.
Analysts and insiders close to Foxconn’s supply chain reportedly told the Wall Street Journal that the business had accelerated its production lines. In an effort to expand output, Foxconn began providing bonuses in November to encourage hiring at its Zhengzhou plant, also referred to as “iPhone city.” The Journal also stated that Foxconn has begun to compensate factory employees who remain on the line through March 20 with a bonus equivalent of about $700.
Due to COVID-19 restrictions imposed on it by Chinese government officials and unpaid bonuses, Foxconn had to deal with worker discontent last month and early this month. Foxconn apologized for the unpaid bonuses and terminated the “closed-loop” method that was in place at its Zhengzhou facility, but The Journal noted that the company is still having trouble increasing production and employment.
Apple Stock Overview
Samik Chatterjee, an analyst with J.P. Morgan, stated earlier this week that the supply of iPhones was “improving and inching slowly toward parity with demand.”
Following a 52-week low on Wednesday, Apple (NASDAQ:AAPL) was able to recover thanks to share price growth on Thursday.
Due to ongoing labor constraints at Foxconn’s primary manufacturing facility in Zhengzhou, China, research firm Trendforce lowered their shipment expectation for 2022 from an earlier prediction to 78.1 million iPhone 14 devices.
Wall Street is still seeing extreme volatility. The stock market indexes were all rising in the early hours of Thursday after plunging for the majority of the week. Gains were made after investors studied the most recent jobless statistics. Based on the numbers, it looks like the Federal Reserve Bank’s plan to raise interest rates to fight inflation may finally be working.
As of 11:26 a.m. ET, Apple (NASDAQ:AAPL) was up 3.29%, Alphabet (GOOGL) was up by 2.87%, and Amazon (NASDAQ:AMZN) by 2.65% which was a 2.1%, 2.4%, and 2.8% rise respectively in response to the news, encouraging investors to purchase their favorite undervalued tech companies.
Apple Stock Went Down Because The IPhone 14 Pro Is Still Likely To Be Hard To Get, And Trendforce Cut Its Estimates
Featured Image: Pexels @ Jess Bailey Designs