Apple will manufacture iPhones in India. This would be, according to analyst Ming-Chi Ku, the solution that Foxconn he would have in mind to remedy the serious crisis caused by the crown virus as a result of which Apple's partner was forced to close its plants in China.
All the main factories are currently stopped, including – says Kuo – that of Zhengzhoufrom which most of the iPhone 11 and iPhone 11 Pro come out. It is not clear when the assembly lines were reopened. Again according to the analyst, at the reopening the rate of return will be between 40% and 60% compared to what the structure offers with full-scale production.
The problems also concern the factory in Shenzhen: a small part of the iPhones are assembled here; the place where iPhone 12 ″ is born and even if the development team would not stop working, drawbacks arise. The coronavirus problem affects the workforce. The performance is no higher than 50% and probably less than 30% of the levels of the scheduled stop period.
In addition to Foxconn, similar problems could also come for Pegatron whose factories outside of Shanghaiai are assigned another part of production. Apple's second most important partner has two facilities in China both massively struggling with coronavirus. The factory in Shanghai it resumed operations on 3 February, with a rate of 90% production rate; Kuo expects layoffs with a reduction of about 60% of the staff after the distribution of the wages at the end of February.
Kuo still reports that the structure of Kunshan, in the Chinese province of Jiangsu, the one commissioned for the production of iPhone 9. The date scheduled for the start of production was February 10 but has been postponed. The expected rate of return on production between 40% and 60% of pre-holiday levels.
As mentioned Foxconn is considering moving the production of Apple devices to India and Taiwan. This choice would make it possible to cope with difficulties in the short term, but not the ideal solution in the long term. The production capacities of these structures are limited and it is impossible to think that they are able to replace the mega Chinese factories or provide Apple with all the parts it needs. Only the cessation of the alarm for the infection and the consequent choices made by the Chinese government could represent a real outlet.
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