Foxconn Denies Reuters Reports On Factory Restart In China

Profile picture for user Tyler Durden

Foxconn denied a report that it plans to resume over half its production by the end of February, as the Covid-19 outbreak worsens.

The report via Reuters noted that 50% of Foxconn’s production would come back online by the end of the month, and the aim for full production for next month. This sent Apple shares to near record highs this week; however, Foxconn ruined the party and said Reuters was incorrect about plant resumptions.

The statement by the world’s largest contract electronics maker was published via the Taipei stock exchange on Thursday, and first cited by Reuters.

Foxconn is Apple’s main iPhone assembler in China and offered no timetable of when its factories would reopen.

Foxconn received the go-ahead to reopen some plants in China this week. However, only about 10% of its workforce had returned to several plants in southern Shenzhen and central Zhengzhou on Monday.

Apple has also extended the shutdown of its retail stores across the country. Stores were supposed to open earlier this week but have now delayed until February 15.

TrendForce Corp. said Apple could see a 10% decline in iPhone sales in 1Q, from 45.5 million to about 41 million units, due mostly because of factory shutdowns tied to the virus outbreak.

We’ve noted, in the last several weeks, that if Foxconn factories cannot resume production by early February and have full production by the end of the month, shortages would develop for Apple iPhones and AirPods.

The one sector with the most exposure to Greater China and the Asia Pacific is also the sector that has outperformed the most in recent months: Tech. This means that supply chain disruptions are about to cause one of the most significant shocks since the financial crisis.

This won’t end well for Apple if shipments are delayed and sales plunge. But, then again, the company has billions of dollars in stock buybacks that it can use to levivtate price.

ZeroHedge

••••

The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)

••••

Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.

••••

Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.

••••

Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.

Be the first to comment

Leave a Reply

Your email address will not be published.


*