In times of Covid and Zero Covid Policy in China, made in China, for US multinationals, Apple in the first place, no longer assists their revenues and profits.
Apple shares are under pressure on Wall Street today, in the wake of fears related to the production of the iPhone, in a China shaken by demonstrations against the anti-Covid lockdowns imposed by the Beijing government.
Bloomberg reports some rumors, according to which Apple and Foxconn have revised upwards the forecasts on the decline in production of Apple’s iPhones, in the Zhengzhou plant, now estimating a lack of production of 6 million iPhone Pros.
This estimate, specified the source consulted by Bloomberg, could change, given that the evolution of the situation will depend on the speed with which Foxconn
Technology Group, the Taiwanese company that manages the factory, will be able to bring employees back to the assembly lines, after the severe lockdown measures that China has launched in recent days, in an attempt to curb the advance of the new wave of Covid.
Thousands of employees who left the plant in October, and who were replaced by new employees who then rebelled against both the quarantine imposed by Beijing and the wages received.
Foxconn’s Zhengzhou plant produces the majority of the iPhone 14 and other iPhone Pro Max models, which have been the hottest models this year.
Apple itself has revised its overall iPhone production estimates downwards from a previously expected 90 million units to 87 million.
Violent protests by employees of the Foxconn plant in recent weeks: last week the employees clashed directly against the police, who intervened to try to quell the revolt.
Reason: In an effort to stem Covid infections, local authorities ordered Foxconn to isolate several employees of the plant’s workforce, also known as iPhone City, made up of more than 200,000 people.
The employees were provided with decidedly spartan meals. Some of them managed to escape; Foxconn and the Beijing government have since brought the situation under control in recent weeks, promising unusually high wages, in order to attract more employees, and promising better working conditions.
“I’m really scared right now – said an employee, according to what was reported last November 23 by a Bloomberg article – we could all be positive for Covid, right now. You are condemning us to death.”
Over the past weekend, Foxconn promised a bonus of up to $1,800 a month for full-time employees who decide to stay in iPhone City throughout the months of December and January.
In the premarket, Apple shares fell more than 2%, reflecting fears that its production levels could fall even faster than feared, due to disruptions in the plant’s activities.