iPhone 12 production falls by more than 50% because of India COVID spread

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What you need to know

  • iPhone 12 production has fallen by half at a Foxconn factory in India.
  • That's because of a massive rise in COVID-19 cases in the region.
  • More than a hundred employees in Tamil Nadu have tested positive for the disease.

A new report says production of the iPhone 12 at a factory in Tamil Nadu has fallen by more than 50% due to COVID-19.

From Reuters:

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.

A full lockdown began on Monday and more than 100 Foxconn employees in the state have reportedly tested positive for the disease. Employees are allowed to leave the facility but are not able to enter, with only a small output being kept according to one source. Two sources told Reuters production had fallen by more than 50%.

In a statement Foxconn said:

"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"

Foxconn shares have fallen sharply following the report. Multiple Apple suppliers including Foxconn have onshored manufacturing in India over the last year, driven in part by very favorable government subsidies given as incentives to invest in the country. Foxconn's Tamil Nadu facility produces iPhones specifically for India, meaning the impact on device supply should be limited to within India's borders.

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