Foxconn acknowledged on Wednesday that more than 30% of the site’s production was halted in November, with a labor issue reported in the final of October. When it occurred, the internal projections were up to 30%. It is unlikely that full production will resume before the final this month, as the factory is the only one that produces premium iPhone models, including the iPhone 14 Pro.
“Worker unrest at Foxconn factories in China could weigh on Apple iPhone shipments in November,” said Victoria Sklar, head of investment at Interactive Investor. “Apple shares fell 2.2% in early trading on Friday, while the benchmark Nasdaq index held steady.” ..
Apple is still seen as one of the most resilient stocks in the tech sector, yet it has been reluctant to issue official guidance amid macroeconomic uncertainty. Best Buy said on Tuesday it expects high-end iPhones to run out of stores this holiday season.
This week, Black saw a year-over-year decline in its iPhones at Apple’s US stores and took longer to restock. Some recruits hired by Foxconn in recent weeks have claimed they were misled about their compensation payments at the factory, while others shared dorms with colleagues who tested positive for COVID.
Foxconn apologized on Thursday for a hiring “technical error” related to wages and offered 10,000 yuan ($1,400) in protest to new recruits who agreed to step down. The workers, mostly new hires and not yet on the production line, took the money and left, he said. A video posted on Chinese social media on Friday showed a crowd and a long line of loaded workers lining up in front of a bus.
Foxconn is a factory that employed over 200,000 people before its problems started. Some recruits had left campus, but did not elaborate on how many. The 1.4 million square foot facility includes bedrooms, restaurants, basketball courts and soccer fields. Another Foxconn source familiar with the matter said some recruits had left campus, but did not elaborate on how many. Employees leaving the company have not yet been trained or started work, so their retirement would not cause further damage to ongoing production.
