Three announcements in one go: Foxconn announces that it is slowly resuming production in China and that it also has ongoing expansion plans for factories in other countries. But negative effects of Coronavirus on the annual balance are already expected.
The much slower than expected recovery of production activities at Foxconn factories in China has already emerged several times in recent days. Even with the OK from the government and local authorities, the largest factory cities where most iPhones and many other consumer electronics devices of other brands are built, operate at reduced speed due to the limitations of people moving and mandatory quarantine periods.
Initially, the blocking of Coronavirus' commercial and production activities was expected to be limited, but significant negative effects are now being detected on the entire electronics chain, not only for Apple, which will have serious repercussions on smartphones, computers, parts and components and more generally on the entire Chinese economy and even worldwide.
While Foxconn reiterates that it is continuing the recovery of its activities in China with Cautela, the largest contract manufacturer anticipates that the effects of Coronavirus will have a negative impact on annual turnover, therefore not just a short and temporary decrease limited to the current quarter. Although anticipating a lower annual turnover due to the epidemic, for the moment the managers of the giant do not quantify the percentage and amount of the indicated decrease.
Finally Foxconn announces that its factories in India, Mexico and Vietnam are operating at full capacity in an attempt to cope with the reduced production in the country of the Dragon, as Reuters points out. Not only that: expansion and expansion work is already underway for these Foxconn factories outside of China.
No problems are expected for the new iPhone 2020 range coming in the autumn, if not a slightly delayed commercialization, but mandatory coronaviruses and stops could cause problems and possible delays for iPhone SE 2 or iPhone 9, the economic terminal that Apple could already present in the March.
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