Two sources told Reuters that production of the Apple iPhone 12 at the Foxconn plant in India had dropped by more than 50 per cent because workers infected with COVID-19 had had to resign, two sources told Reuters.
According to a source, more than 100 Foxconn workers tested positive for Kovid-19 and by the end of May, the company had imposed a no-entry ban on factories in the southern state of Tamil Nadu.
The Foxconn facility in the capital Chennai makes the iPhone exclusively for India, the world’s second largest smartphone market.
“Employees are only allowed to leave but have not been allowed access to this facility since yesterday,” the person said. “Keeping only a small part of the output” “
Both sources said more than 50 per cent of the plant’s power had been cut off, and they were reluctant to be named because they were not allowed to speak to the media.
They did not specify the capacity of the plant and it was not clear how many workers were at the facility, which provided housing for the workers.
Taipei-based Foxconn, the world’s largest contract electronics maker and Apple’s largest supplier, says a small number of employees at a facility in India have tested positive for the Covid-19 and the company is providing them with medical assistance.
“Foxconn has made the health and safety of our employees our top priority … We are working closely with local government and public health authorities in India to address this challenge,” a statement to Reuters said.
Foxconn declined to comment on factory output or specific stuffing levels. Apple did not immediately respond to a request for comment.
Tamil Nadu is one of the worst affected states in India due to the second wave of coronavirus. In an effort to slow the growing infection, officials imposed a complete lockdown in the state from Monday, shutting down public transport and closing shops.
India’s business has doubled
India has benefited from Apple’s move to shift some areas of production from China to other markets through a trade war between Washington and Beijing, with Apple announcing that Apple had begun collecting iPhone 12 in India in March.
Despite Apple’s small share of the budget phone-dominated Indian market, CEO Tim Cook said in January that helping launch an online store doubled India’s business in the December quarter compared to the previous year.
Foxconn similarly noted that strong smartphone sales in the fourth quarter of the work-to-home trend contributed to stronger-than-expected performance.
Growth in India accelerated in the first quarter, with Apple shipping more than a million iPhones, according to market research firm Canalis. The demand for the iPhone 12 was supported by local rallies and attractive finance offers, Canalis said.
However, the outlook has been weighed down by the coronavirus crisis, where the incidence of covid-99 and deaths has risen at a record pace in recent weeks. The country has recorded about 22.66 million infections and more than 26,000,000 deaths, according to experts, the actual figure could be even higher.
Foxconn is not the only producer affected. Workers tested positive for the Covid-19 after Nokia and Chinese smartphone maker OPPO suspended production at factories in India last year.
On Monday, Taipei-based technology research firm Trendforce cut its global smartphone production forecast from 9.4 percent to 8.5 percent, citing the coronavirus impact in India on major retailers, including Samsung and Apple.
“Smartphone brands will therefore closely monitor inventory of their entire device and adjust their next production plans in the meantime,” Trendforce said in a report.