Foxconn Protests Expected to Cut Chinese iPhone Output by 30 Percent

Foxconn Protests Expected to Cut Chinese iPhone Output by 30 Percent
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Disruptions at Hon Hai Technology Group’s largest facility in China could reduce the production of iPhones by at least 30% this month, Reuters reported. The country’s zero-COVID-19 policy recently sparked widespread worker protests.

A source told the news agency it would not be possible for Foxconn to get back to full capacity by the end of November, given the scale of the labor unrest. Foxconn reportedly offered to pay recently-hired workers CNY10,000 ($1,396) to resign and leave the facility.

The company’s facility in Zhengzhou was hit by protests spurred by fears over COVID-19 and claims of payment delays, forcing the Taiwan-headquartered company to apologize to workers. In early November, Foxconn downgraded its earnings expectations for Q4 following a spike in COVID-19 cases at the assembly facility, while Apple warned iPhone capacity would be significantly reduced. The Zhengzhou plant employed around 200,000 workers before the recent unrest.