Foxconn’s iPhone output in India has dropped in the middle of a COVID increase: Report | Business and Economic News

Production of the Apple iPhone 12 at a Foxconn plant in India has fallen by more than 50 per cent as COVID-19-infected workers have been forced to leave their posts, the two sources told Reuters.

More than 100 Foxcone employees have tested positive for COVID-19 and the company has imposed a ban on entry to its factory in the southern state of Tamil Nadu until the end of May, one source said.

The Foxconn facility in the capital Chennai produces iPhones specifically for India, the world’s second-largest phone market.

“Staff have only been leaving since yesterday but are not entering the facility,” the person said. “Only a small portion of the output is retained.”

Both sources said more than 50 percent of the plant’s capacity has been cut, and they will not name permission to speak to the media.

They did not specify the capacity of the plant and it was not clear how many workers were in the facility, which provides accommodation for the workers.

Taipei-based Foxconn, the world’s largest electronics contractor and Apple’s main supplier, said a small number of employees at its facilities in India have tested positive for COVID-19 and the company provides support, including medical care.

“Foxconn makes the health and safety of our employees a priority … we have worked closely with local governments and public health authorities in India to address the challenges,” he told Reuters.

Foxconn declined to comment on the factory exit or specific employee level. Apple did not immediately respond to a request for comment.

Tamil Nadu is one of the most affected states in the second wave of coronavirus that caught India. Officials imposed a complete shutdown in the state from Monday, shutting down public transportation and closing outlets in an attempt to slow rising infections.

Business in India doubled

India has benefited from Apple’s move to move some production areas from China to other markets while navigating the trade war between Washington and Beijing, Apple announced in March that it had begun assembling the Indian iPhone 12.

Although Apple’s budget is small in the Indian-dominated phone market, CEO Tim Cook said in January that business in India had doubled in the December quarter compared to the previous year, with the launch of the online store.

Foxconn also said big phone sales were stronger than expected in the fourth quarter amid the trend from work to home.

Canalys, a market research firm, said growth in India expanded in the first quarter, and Apple shipped more than a million iPhones. Canalys said local meetings and attractive funding offers have been in demand for the iPhone 12.

However, the outlook has been overshadowed by the coronavirus crisis that has gripped India, where COVID-19 cases and deaths have risen at a record pace in recent weeks. The country has recorded an estimated 22.66 million infections and more than 246,000 deaths, and experts say the actual data could be much higher.

Foxconn is not the only producer affected. Chinese phone manufacturers Nokia and OPPO last year suspended production at factories in India after workers tested positive for COVID-19.

Taipei-based technology research company TrendForce on Monday cut its global phone production growth forecast from 8.5 percent to 9.4 percent, citing the impact of the Indian coronavirus among major Samsung and Apple vendors.

“Smartphone brands are therefore expected to closely monitor inventories of entire devices and adjust subsequent production plans accordingly,” TrendForce said in a report, which may revise the forecast even lower if the second occurrence remains local production and sales. quarter.