Holiday sales of Apple smartphones under threat - China restricts the work of factories because of the coronavirus, and Foxconn will reduce the supply of iPhones from the largest factory by 30%

Here's What We Know

Authorities in China cannot be referred to as loyal to the coronavirus. With any outbreak, they introduce mass quarantines and start testing everyone for COVID-19. Since about 90% of Apple smartphones are manufactured in China, all this jeopardizes iPhone sales during the holiday period, which traditionally begins at the end of the year.

Foxconn is already preparing to reduce shipments from the Zhengzhou plant by about a third (30%). We are talking about the company's largest production site and the world's largest factory for the assembly of the iPhone. Because of the quarantine restrictions associated with an outbreak of coronavirus, Foxconn begins to redistribute production in a hurry and wants to increase production in Shenzhen. According to various sources, the shares of the manufacturer went down in price by 1.9-2.4% on October 31.

Note that the Taiwanese giant is the largest manufacturer of iPhones. Foxconn manufactures 70% of Apple smartphones, which provide it with almost half of its income. Production is also set up in India, but the volume cannot be compared to the site in Zhengzhou.

Source: Reuters

Image: CNBC