- Tram Ho
According to Reuters , Foxconn has just announced it will resume normal production from the end of March and now has more than half of the seasonal workforce in China started working after the outbreak of Covid-19.
The Covid-19 epidemic that broke out in China late last year had serious impacts on life and economy. China has extended the Tet holiday period due to disease and blockade, controlling people in many big cities.
Of course this leads to a sharp decline in the number of employed workers, resulting in a slowdown in production lines. Foxconn is one of the most influential companies, the number one outsourcing company for Apple and many others.
Foxconn had previously started manufacturing again with a more cautious attitude when only partially mobilizing the line. Up to now, only 10% of human resources have returned to work.
Meanwhile, the company also moved a number of lines to India in the risk of disease progressively worse. Even instead of producing iPhones or other Apple devices, Foxconn also produces masks to serve the needs of the market.
Foxconn warns that revenue from assembling consumer electronic products in Q1 / 2020 will drop by 15%. However, the company also forecasts that revenue may regain its momentum after the production line operates at 100% capacity.
The Taiwanese manufacturer said that the impact of Covid-19 is only short-term and its impact on Foxconn’s supply chain is not really serious.
The stability of Foxconn will certainly be good news for Apple. Because just because there is any uncertainty with Foxconn’s line, the time of launching the new iPhone or MacBook may be delayed.
Foxconn shares have fallen more than 10% this year.
Source : Genk