Thousands of employees fired from Foxconn's largest factory, iPhone shipments under threat
All this week at the Foxconn plant in China, the largest manufacturer of iPhones, protests and riots continued. Reuters writes that the situation has been resolved, but it could still affect the production and supply of Apple smartphones.
Here's What We Know
Protests at the plant Foxconn have arisen because of discontent of employees: they were outraged by non-payment of bonuses for work in extreme conditions and strict restrictions due to the pandemic coronavirus. The plant is forced to operate in a "closed cycle" and place new recruits in shared dormitories with people infected with COVID.
Foxconn representatives have already apologized for the "technical error" related to pay. The company offered each protesting recruit 10,000 yuan (about $1,400) to resign and leave the premises. More than 20,000 employees agreed to the terms and quit. Most were newcomers who had not yet worked on the production lines. Before the protests and layoffs began, the factory employed more than 200,000 people.
All this could have a negative impact on iPhone production. Apple has already said Nov. 7 that it expects lower shipments of the iPhone 14 Pro and Pro Max, and Best Buy on Tuesday warned of a shortage of high-end iPhones in stores this holiday season. Some analysts estimate that about 10 million fewer iPhones will be released than originally anticipated. Others predict that there will be 25 to 30 percent less iPhone 14 Pro inventory than usual ahead of the holiday shopping season.
At the same time, a source at Foxconn assured that the current capacity has not been affected because the people who quit have not yet been trained and have not started work.
Source: Reuters
Photo: Getty Images
