Source: Apple
What you need to know
- Foxconn has said it plans to "cautiously" restart production at its main plants in China.
- Factories have been unable to resume full production due to the outbreak of the COVID-19 virus in the country.
- It has also warned that revenue will suffer as a result of the disruption.
Foxconn has said it plans to "cautiously" restart production at its main plants in China after several weeks of extended closure and disruption.
According to Reuters:
Apple iPhone maker Foxconn (2317.TW) said on Thursday it is cautiously restarting production at its main plants in China and warned revenue will be hurt this year by the coronavirus epidemic.
The statement comes just days after Apple (AAPL.O) rescinded its March quarter sales guidance, saying factories in China have been slower to get back to work than first anticipated after Lunar New Year holidays were extended amid the outbreak.
Foxconn, the world No. 1 contract manufacturer, also said its plants in countries such as Vietnam, India and Mexico continue to operate at full capacity with expansion plans underway as it seeks to minimize the impact of the virus.
The report describes the situation as a "logistical nightmare", many workers find themselves trapped at home due to travel restrictions and quarantine. These restrictions differ by province and city but have largely rendered most people unable to return to work after the Lunar break in the country.
There have been mixed reports in recent weeks with regard to Foxconn and its return to production. A report suggested that Chinese authorities had told Foxconn not to reopen its factories. More recently, it was purported that Foxconn was hoping to resume 50% production by the end of February, and 80% by the March, a timetable Foxconn denies.
Now Foxconn itself has confirmed that is seeking to restart production in its main plants in China.
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