Foxconn working 'at fastest speed' to restore vast China plant | Tech News

Foxconn working 'at fastest speed' to restore vast China plant

Taiwanese tech giant Foxconn said it was working quickly to resume full production at its giant factory in central China before the crucial holiday season.

By:AFP
| Updated on: Nov 11 2022, 00:57 IST
iPhone 15 Pro to get iPhone SE 3, iPhone 8 type specs! Amazing Apple move
Apple
1/5 Are you waiting eagerly to get some exciting insights into the Apple iPhone 15 specs? Though there is still a year's time for the new iPhones' launch (expected in September, 2023), the leaks and rumors about it are creating a buzz amongst the fans. And as per the latest update, it is being said that the volume button and the power button of the two high end iPhone 15 models, iPhone 15 Pro and iPhone 15 Pro Max, may adopt a solid state button design similar to the home button design of iPhone 7, iPhone 8, iPhone SE 2 and iPhone SE 3. (REUTERS)
Apple
2/5 The information has been provided by Ming-Chi Kuo, analyst at TF International Securities over his Twitter handle. "My latest survey indicates that the volume button and power button of two high-end iPhone 15/2H23 new iPhone models may adopt a solid-state button design (similar to the home button design of iPhone 7/8/SE2 & 3) to replace the physical/mechanical button design," he tweeted. (HT Tech)
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3/5 In a series of tweets, the analyst further informed that there will be Taptic Engines located on the internal left and right sides to provide force feedback to make users feel like they are pressing physical buttons. He went on to say that due to this design change, the number of Taptic Engines used in each iPhone will increase from the current one to three. As a result, the existing Taptic Engine suppliers, Luxshare ICT (1st supplier) and AAC Technologies (2nd supplier) will be significant beneficiaries. (AFP)
Apple
4/5 Also, it is expected that high-end Android smartphones will also follow Apple's design to create new selling points, which is a structural positive for the mobile phone vibrator industry, the analyst added. (AFP)
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5/5 Analyst Kuo had earlier said that Apple is expected to create massive differentiation between iPhone 15 Pros and iPhone 15 standard models. "I believe Apple will create more differentiation between iPhone 15 Pros and iPhone 15 standard models to increase Pro shipment allocation and the new iPhone ASP (average selling price)," his tweet read. Kuo said that Apple may create differentiation between the iPhone 15 Pro Max and the iPhone 15 Pro models in order to generate more sales and profits in a mature market. (HT Tech)
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Apple's iPhone 14 Pro and iPhone 14 Pro Max production has taken a hit due to Covid-19 lockdowns at the Foxconn plant in Zhengzhou. (AFP)

Taiwanese tech giant Foxconn, a principal Apple subcontractor, said Thursday it was working quickly to resume full production at its giant factory in central China before the crucial holiday season.

Foxconn, also known by its official name Hon Hai Precision Industry, is the world's biggest contract electronics manufacturer assembling gadgets for many international brands.

Most of its factories are in China, particularly the eastern city of Zhengzhou where lockdowns were imposed last month, in line with Beijing's zero-Covid policy, after a spike in infections.

The huge facility of some 200,000 workers -- dubbed "iPhone City" -- has been operating in a "closed loop" bubble.

Apple said this week the facility was running at "significantly reduced capacity" and warned customers would face longer wait times for the flagship iPhone 14 Pro and iPhone 14 Pro Max iPhones built there.

"With the support of Henan provincial government, we will eliminate the infections at the fastest speed to resume full capacity for production," Foxconn chairman Young Liu said in a call with investors.

The production delays have come just ahead of the crucial Christmas holiday season for Western markets and the lunar new year in late January.

"The fourth quarter and next year are very important," Liu said.

"We will make every effort to adjust our capacity and production to ensure that the demands for the two holidays will not be affected," he said.

Foxconn has already said it was revising down its outlook for the last quarter.

Announcing third quarter figures on Thursday, Foxconn said net income rose five percent to NT$38.8 billion ($1.22 billion), below earlier average estimates of NT$41 billion, according to Bloomberg News.

China is sticking to its strict zero-Covid policy, with harsh lockdowns, quarantines and testing regimens imposed after even the smallest outbreaks.

The measures have kept infections low but injected persistent uncertainty for businesses in the world's second-largest economy.

Foxconn is the largest private employer in China.

"To maintain the health of more than one million workers and safe production has been the biggest challenge for the management," Liu said.

Panicking workers fled the Zhengzhou site on foot last week in the wake of allegations of poor conditions at the facility. Foxconn offered bonuses to workers who stayed on.

Liu, in his call with investors, blamed the walkouts on "edited false videos and information that sparked some panic".

Zhengzhou authorities lifted a week-long lockdown of the city's outlying airport district on Wednesday but they retained restrictions in several high-risk neighbourhoods, including where the Foxconn campus is located.

The city reported more than 1,200 new infections Thursday.

Morgan Stanley analysts wrote in a research note on Monday that Foxconn's expected sales could drop as much as 20 percent in the fourth quarter in a worst-case scenario, partly due to a 36 percent drop in revenue from production of iPhones, Bloomberg News reported.

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First Published Date: 11 Nov, 00:57 IST
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