Following a report that Foxconn’s iPhone assembly plants will speed up their return to normal production, Apple shares surged with the company gaining some $18 billion in market value on Wednesday. The factories were closed for weeks in China due to a coronavirus-related shutdown, but Foxconn now expects to reach 50% output by the end of February, and 80% in March, Reuters reported.
“Shipments will be affected, but it’s too early to give an exact number. We might still have a chance to make it with overtime, but we also need to monitor consumer sentiment to come for the end products,” the source told Reuters, referencing electronic devices including smartphones.
Apple shares traded as much as 1.3% higher in Wednesday trading.
The accelerated output plans follow a Monday Reuters report noting only two factories were able to reopen this week. Foxconn’s Zhengzhou and Shenzhen plants were authorized to resume production, but only 10% of the factory’s employees returned to work on February 10, according to Reuters. The company’s Kunshan factory was approved to resume production on Tuesday. Apple saw as much as $27 billion erased from its market value on Monday following the Reuters report.
MacDailyNews Take: Obviously, we’re not out of the woods, yet, but these factory restarts are a promising sign, as evidence by the surge in Apple shares. Up to 50% capacity in a couple of weeks and 80% capacity a few weeks after that is strong progress!