Apple analyst Ming-Chi Kuo says some Foxconn iPhone assembly has been moved from China to India and Taiwan due to the coronavirus impact on Chinese production plants. Kuo sees much uncertainty regarding iPhone production in China currently.
In a note seen by AppleInsider Kuo believes that there is more than just issues surrounding Foxconn for Apple. Besides just Foxconn, Pegatron will have problems soon if they haven’t manifested already, and the entire supply chain has been shaken by the extended holiday ordered by the Chinese government.
To hopefully deal with some of these problems, Kuo asserts that some [Foxconn] production has been moved to India and Taiwan, but “capacities are limited” at those facilities.
Pegatron has two critical, and impacted, facilities. The first, Shanghai, resumed work on February 3, with a labor return rate of about 90%. But, Kuo is expecting resignations, lowering the workforce to about 60% after pay is doled out in February.
Kuo speculates that Pegatron’s Kunshan facility is in charge of “iPhone SE 2” production. The original start date for production was February 10, but that has since been postponed. The labor return rate is predicted to be between 40% and 60% of pre-holiday levels.
MacDailyNews Take: Of anyone, we expect Ming-Chi Kuo has good information regarding how Foxconn is handling the coronavirus outbreak. Again, for the lives impacted and all of the less important ancillaries like commerce and the economy, hopefully we can get a handle on this outbreak sooner than later.