Because of the protests at the Foxconn plant in China, Apple will face a production shortfall of 6 million iPhones 14 Pro - Bloomberg
Riots and protests continue at the Foxconn plant in China, which produces smartphones for Apple. Bloomberg, citing a source familiar with the assembly operations, writes that this will lead to the company shortfall of about 6 million new iPhone 14 Pro.
Details
The problems at the plant began back in October, when a coronavirus outbreak put 20,000 workers under quarantine in conditions with limited food. This led to the flight of many workers, after which Foxconn began hiring new people. But they, too, rebelled because they were dissatisfied with working conditions and pay. Now the situation remains precarious, with Foxconn already offering bonuses of up to $1,800 a month for employees to stay in the factory during December and January.
Apple has already lowered its total production plan to about 87 million units from an earlier forecast of 90 million units. The source says the company hopes to make up for next year's production losses. Analysts predict a production shortfall of about 6 million smartphones, with the most popular models to date, the iPhone 14 Pro and Pro Max.
If the turmoil continues in the coming weeks, the consequences could be even more significant. Now much depends on how quickly Foxconn can get people back to the assembly lines.
Source: Bloomberg
Photo: AFP | Getty Images
