Shenzhen denies putting halt on Foxconn’s production resumption

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Local Chinese authorities have recently refuted a report regarding the pause on reopening iPhone production facilities in Shenzhen, including Apple supplier Foxconn, in light of the coronavirus outbreak. But only about 10 percent of the workforce - or about 16,000 people - were reportedly able to return to their jobs.

Foxconn of Taiwan received approval to resume production at a plant in Zhengzhou City in northern China, which had been closed due to an outbreak of coronavirus, a person with direct knowledge of the matter told Reuters.

The two plants contain most of Foxconn's iPhone assembly lines, the news agency said.

One market research firm, TrendForce, said it was slashing its forecast on iPhone production in the first quarter by 10 percent, or 4.5 million units.

Foxconn informed workers in its Shenzhen headquarters last week that they should not return to work.

Foxconn, the world's biggest iPhone assembler, was supposed to resume production on Monday.


Its Shenzhen plant, which is responsible for developing Apple's new iPhone models, which are expected to be launched in the second half of the year, is set to resume about 30 to 50 percent of production in a week's time given the circumstances, TF International Securities Group Co (天風國際證券) analyst Kuo Ming-chi (郭明錤) said in a report on Sunday.

Authorities in the manufacturing hub of Shenzhen will check the plant again later this week to ensure virus control measures are properly in place, the person said, adding that employees there were told not to return to work tomorrow. It did not give further details.

Experts have been warning about the coronavirus's effect on the consumer tech industry and now it looks like iPhone production is going to have to slow down significantly due to reduced numbers of factory staff.

Foxconn shares fell 2.4% in the trade on Monday morning, lagging behind a 1% decline in the market in general.

Workers are seen inside a Foxconn factory in the township of Longhua in the southern Guangdong province, May 26, 2010. Thousands of workers who had gone home during the Lunar New Year holiday have already returned to resume work despite there being no official announcement from Foxconn.

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