Foxconn iPhone India output drops 50% amid COVID surge-Report
- 4 years ago
Production of the Apple iPhone 12 (AAPL.O) at a Foxconn (2317.TW) factory in India has slumped by more than 50% because workers infected with COVID-19 have had to leave their posts, two sources told Reuters.
The Foxconn facility in the southern state of Tamil Nadu produces iPhones specifically for India, the world's No.2 smartphone market.
Tamil Nadu is one of the worst hit states in the second coronavirus wave engulfing India. Officials imposed a full lockdown in the state from Monday, closing public transport and shuttering shops, to try slow surging infections.
More than 100 Foxconn employees in the state have tested positive for COVID-19 and the company has enforced a no-entry ban at its factory in the capital of Chennai until late May, one of the sources said.
"Employees are only allowed to leave but not to enter the facility since yesterday," the person said. "Only a small part of output is being kept."
More than 50% of the plant's capacity had been cut, both sources said, declining to be named as they were not authorised to speak to the media.
They did not specify the plant's capacity and it was unclear how many workers were at the facility, which provides dormitory accommodation for employees.
Taipei-based Foxconn, the world's largest contract electronics maker and a major supplier to Apple, said a small number of employees at one of its facilities in India tested positive for COVID-19 and the company was providing them with support, including medical assistance.
"Foxconn places the health and safety of our employees as our highest priority and that is why we have been working closely with local government and public health authorities in India to address the challenges that we and all companies are facing in dealing with the COVID-19 crisis," it said in a statement to Reuters.
Foxconn declined to comment on factory output or specific staffing levels. Apple did not immediately respond to a request for comment.
India has benefited from Apple's move to shift some areas of production from China to other markets as it navigates a trade war between Washington and Beijing, with Apple announcing in March it had started the assembly of the iPhone 12 in India.
Source: Reuters
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