The American tech giant has had to battle unrest for more than a month at its chief installer Foxconn’s megafactory in Zhengzhou.
Apple’s business is under threat from a massive coronavirus outbreak in China that could disrupt iPhone production, according to the Financial Times.
The American tech giant has had to battle chaos for more than a month at its chief installer Foxconn’s megafactory in Zhengzhou, China, known as iPhone City, following another outbreak of Covid-19 that began in October.
It has been noted that due to the widespread illness of workers, the waiting time for a consumer in the United States for his new iPhone is almost a month. As the Chinese government withdraws its zero-fight policy against Covid-19, a long-term risk is now looming – a potential shortage of workers in parts factories or assembly plants across the country.
Now Apple is experiencing a shortage of 5 to 15 million iPhones.
The situation is complicated by the fact that a fifth of Apple’s revenue comes from sales in China, and more than 90 percent of the iPhone is assembled there.
It added that net income will fall by more than 8 percent this quarter, according to bank estimates compiled by Visible Alpha.
It will be remembered that one in five city residents in China have lost their jobs. Great stress is being experienced by small and medium-sized enterprises in China. The main reasons for the decline are the covid isolation of the entire city and the severity of the quarantine measures.
Source: korrespondent
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