Foxconn says return to production has "exceeded expectations"

Iphone Factory China
Iphone Factory China (Image credit: Apple)

What you need to know

  • Foxconn says it has returned to normal levels of production in China and Vietnam.
  • Founder Terry Gou Tai-Ming says resumption has "exceeded expectations".
  • Concerns remain over weak consumer demand, particularly in the US.

The founder of Foxconn, Apple's main manufacturing partner in China, has said that its return to production has "exceeded expectations".

As reported by South China Morning Post:

Terry Gou Tai-ming, founder of Apple's major contract manufacturing partner Foxconn Technology Group, said on Thursday the resumption of production at its factories in mainland China had "exceeded expectations", following a prolonged halt owing to the coronavirus outbreak that has disrupted supply chains.Foxconn, formally known as Hon Hai Precision Industry and the world's largest electronics contract manufacturer, has most of its production on the mainland, where many of its parts suppliers are also located, and as a consequence was hit hard by the coronavirus-related curbs that have hurt demand and upended supply chains of manufacturers globally.

Recent reports early last week suggested that Foxconn was hoping to return to normal production this month, however, this latest report suggests it may already have achieved this goal. It had previously been forced to delay the return of its workers back in February, and was even told it could not reopen by Chinese authorities.

Gou did, however, warn that the coronavirus outbreak, which was recently deemed a pandemic, could impact on consumer demand, and that the US was of particular concern:

"In the United States, what we are worried about is the market," he said. "If production was resumed quickly but consumers stop spending … that would be key to the economic recovery."

Concerns also reportedly still remain in Japan and South Korea, where outbreaks remain serious. The news will come as some relief to Apple, who's supply chain has been decimated by the coronavirus outbreak. Whilst this latest news could signal a return to normal levels of inventory and supply, demand is still likely to suffer.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.

Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9