Covid-19: Apple Will Lose 6 Million iPhone Pros Due To Workers' Protest At Biggest Foxconn Factory In China

The Zhengzhou Foxconn campus, which normally houses more than 200,000 employees has been hit by protests and it will cause Apple to lose as many as 6 million iPhone Pro models, the media has reported.

The ongoing disruption at Foxconn’s biggest iPhone manufacturing factory in the Zhengzhou district of China is set to cost dearly to Apple.

The ongoing disruption at Foxconn’s biggest iPhone manufacturing factory in the Zhengzhou district of China is set to cost dearly to Apple. The Zhengzhou Foxconn campus, which normally houses more than 200,000 employees is where the vast majority of iPhone Pro models are assembled has been hit by protests in the wake of strict Covid-19 restrictions and it will cause Apple to lose as many as 6 million iPhone Pro models, said a report by news agency Bloomberg on Monday.

Production losses are set to impact Apple’s iPhone 14 Pro and iPhone 14 Pro Max models, which have been the highest in demand this year. Foxconn's manufacturing facility in China's Zhengzhou has been rocked by workers protests who have fought back against Covid-19 lockdown fallout, the report added.

“Apple and Foxconn increased their estimates of the Zhengzhou shortfall over the past two weeks due to growing disruptions, said the person, adding that they expect to be able to make up the 6 million units in lost output in 2023", the report noted.

It has to be noted that the iPhone 14 Pro and iPhone 14 Pro Max are the most in-demand handsets this year, offsetting slumping sales for its regular iPhone 14 editions. The Foxconn situation serves up another reminder of the dangers for Apple of relying on a vast production machine centered on China at a time of unpredictable policy and uncertain trade relations.

Meanwhile, analysts at Morgan Stanley cut their iPhone Pro output estimates for the current quarter by 60 lakh units earlier this month. In a worst-case scenario of prolonged lockdowns impacting assembly at Zhengzhou, Foxconn is seen risking as much as 36 per cent of iPhone revenue or 20 per cent of its overall sales in the quarter.

The labour unrest at the Zhengzhou plant that began last Wednesday marked rare scenes of open dissent in China which workers say was fueled by claims of overdue pay and frustration over severe Covid-19 curbs.