Employees at Foxconn, which manufactures the iPhone, are demanding better working conditions; production can reduce more than 30%
Foxconn, Apple’s biggest iPhone factory in China, is expected to have its production reduced in November after renewed protests by workers at the company, the company said. Reuters🇧🇷
According to the news agency, more than 30% of this month’s production could be affected, in addition to an internal estimate of up to 30% when the labor demonstrations began. The company is the only one to manufacture models premium of Apple cell phones, such as the iPhone 14 Pro.
On Monday and Tuesday (Nov 22 and 23), Foxconn employees held protests against working conditions during the zero covid policy implemented in China. As a way of not jeopardizing production, the technology company placed employees in accommodation to prevent the transmission of the new coronavirus.
However, workers claim that the accommodations where they stay have a high risk of contamination by the coronavirus. They also claim that they are not being paid properly.
Furthermore, on Thursday (24.Nov), the Chinese government placed the city of Zhengzhou, where Foxconn is located, under lockdown🇧🇷 The measure added tension to the protests.
The financial company analyst KGI Securities🇧🇷 Christine Wang, told the Reuters that, if the situation lasts until December, about out of 10 millions of iPhone production units will be lost. That would represent a 12% drop in mobile phone shipments in the last quarter of 2022.
The US store Best Buy said on Thursday (24.Nov) to be “much expected” that the iPhone supply drops during the holiday season. In addition, the investment bank Wedbush Securities estimated that Apple stores currently have 25% to 30% fewer iPhones 14 Pro than usual in this era.
A source told Reuters that Foxconn’s current production capacity was not affected by the manifestations of the company’s employees. “The incident has a big impact on our public image, but little on our capacity”he stated.
Since the beginning of the pandemic, the Chinese government has implemented the “covid zero” policy. The initiative imposes strict restrictive measures to contain the spread of the coronavirus in the country.
According to data from the Our World in DataChina recorded 31,928 cases in the last 24 hours and no deaths from covid.
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