Foxconn Plant Closure Could Impact iPhone 5 Production
Foxconn has temporarily closed one of its assembly plants after a riot broke out in northern China, sparking concerns about the effect this might have on Apple's (NASDAQ: AAPL) iPhone 5.
According to Reuters, the riot involved roughly 2,000 workers and as many as 5,000 members of law enforcement who were sent to a Foxconn dormitory at a plant in Taiyuan to put an end to the violence.
Hon Hai Precision Industry Co., the parent company of Foxconn, has not said which of its plants assemble Apple products or components. The Taiyuan plant is believed to be one of the Foxconn facilities that produces the iPhone 5, which was released in the United States last week.
Thus far, demand for the iPhone 5 has caused Apple to delay the shipping date for many iPhone 5 orders placed online. The company confirmed the supply shortage after announcing that more than two million pre-orders were placed in just 24 hours. AT&T (NYSE: T) is among the many carriers that have reaped the benefits of the iPhone 5's release.
Earlier this morning, Apple announced that it had sold more than five million iPhone 5 units, surpassing the first weekend sales of the iPhone 4S by more than one million units.
In addition to the device itself, consumers are also purchasing the new Lightning adapter for the iPhone 5, creating a shortage for that as well.
When the device was finally released at 8:00 am EST on Friday, consumers lined up all over the world, with self-proclaimed iPhone groupies leading the charge. The device has already broken international sales records and is expected to push Apple's stock above $850. One study suggests that the lines of people waiting for the iPhone 5 were 83 percent longer than the lines for the iPhone 4S.
Despite these and other success stories, there have been a few blemishes that kept the iPhone 5 from achieving a flawless launch. On the day the product was released, SBB, the national railway of Switzerland, expressed its disappointment with Apple for copying the design of its famous clock.
Last week, consumers and tech bloggers began to share their complaints about the new Maps App, which replaced Google (NASDAQ: GOOG) Maps after Apple decided not to renew its contract with the search engine giant.
Despite these issues, the iPhone 5 is still expected to continue breaking sales records.
Follow me @LouisBedigianBZ
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.