‘Fairly small impact’ on Foxconn iPhone output from virus outbreak so far

The outbreak of the 2019-nCoV coronavirus, which the World Health Organization declared a global health emergency, threatens to disrupt swathes of Chinese manufacturing, but so far Foxconn has experienced a ‘fairly small impact’ from the virus outbreak as it shifted production to other countries.

virus impact on FoxconnYimou Lee for Reuters:

Taiwan’s Foxconn, which makes smartphones for Apple and other brands, has halted “almost all” of its production in China after companies were told to shut until at least Feb. 10, the source said… The source told Reuters on Monday that Foxconn has so far seen a “fairly small impact” from the outbreak as it was utilizing factories in countries including Vietnam, India and Mexico to fill the gap, adding that the company will be able to make up for the delay if factories work overtime after the ban.

The source said a halt beyond Feb. 10 could disrupt Foxconn’s shipments, highlighting concerns about production hubs in the southern province of Guangdong and the city of Zhengzhou in Henan province where key iPhone plants are located.

“What we are worried about is delays for another week or even another month. The impact would be big,” the source said. “It definitely will have an impact on the Apple production line… The tricky question is whether we will be able to resume production (on Feb. 10)… It’s up to the instructions given by central and provincial governments.”

MacDailyNews Take: Positive news. Hopefully, no one else falls victim to 2019-nCoV and it can be contained ASAP!

2 Comments

  1. This Coronavirus outbreak has struck during the Chinese New Year.

    From a medical point of view, it’s bad because so many Chinese traditionally travel to be with their loved ones and the virus can spread rapidly.

    From Apple’s point of view, the timing is somewhat fortuitous because Apple pretty well shuts down production at this time every year and the factories are idle. It remains to be seen how quickly Apple’s suppliers will be able to resume production, but at least the current cessation of production was a planned event and happens every year. When the workers resume operations, everybody will be acutely aware of bio security issues and will hopefully take sensible precautions, whereas if the virus had hit at a time when the factories were in full production, people would have been exposed to the virus before it’s implications ere understood.

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