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iPhone making Foxconn plant resumes manufacturing in China but only with 10 per cent workforce

Foxconn has resumed its operation in China amidst the Coronavirus outbreak. The company has only begun with 10 per cent of its workforce.

twitter-logo Amritanshu Mukherjee   New Delhi     Last Updated: February 10, 2020  | 19:39 IST
Source: Reuters

Highlights

  • Foxconn has resumed operations in China with 10 per cent workforce.
  • The production as halted due to the deadly Coronavirus outbreak in China.
  • Foxconn supplies components for Apple's iPhones.

It has been a while since the Coronavirus outbreak has affected China in a major way, claiming more than 800 lives and affecting China's businesses massively. Apple's major supplier Foxconn had shut its operations to prevent spreading of the virus but as global supplies are rumoured to get affected, Foxconn has started getting back its factories up and running. A fresh report suggests that Foxconn has resumed operations in China but not in the same way as it usually does.

According to the latest report from Reuters, Foxconn has resumed its operations from the city of Zhengzhou, affirmed a source. The plant is currently operating only with 10 per cent of its workforce (16,000 employees) for now but the report says that Foxconn is taking all measures to ensure the protection of its workers from the virus. The Zhengzhou plant is one of the two major plants supplying iPhones for Apple.

Foxconn is yet to open the Shenzhen plant as the authorities are yet to give their safety nod to this particular plant. However, chances are that Shenzhen plant may open in another week's time. There's no information as to whether all of Foxconn's will return or the company will reduce its active workforce to prevent spreading the virus.

On the other hand, Huawei says it has resumed operations of its consumer devices and carrier equipment.
The reduced production could impact the global supplies of iPhones across all markets. The Coronavirus outbreak is also rumoured to affect Apple's upcoming March announcement of the iPhone 9 launch. The iPhone 9 will be Apple's return to the affordable smartphone space since the iPhone SE and Apple might be expecting greater sales numbers once the phone launches in several countries, including India. The iPhone 9 is expected to start from as low as $399 (approximately Rs 28,000) and make it tough for companies like OnePlus and Samsung in emerging markets.

The Coronavirus outbreak has affected other global events as well. The upcoming Mobile World Congress (MWC) in Barcelona is witnessing a lot of major manufacturers backing out due to the Coronavirus scare. LG, Sony, Amazon and a few others have pulled out of the tech convention after the Coronavirus outbreak happened.

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