Central China Flood Hampers Apple's Biggest iPhone Production Site: WSJ

Critical flood in Central China temporarily cut the power at Apple Inc's AAPL biggest iPhone manufacturing site, the Wall Street Journal reported.

  • The damage to the manufacturing hub in Zhengzhou city, Henan province, however, appeared limited.
  • Taiwan's Foxconn Technology Co Ltd FXCOF operates three factories in the city, accounting for over 50% of the global iPhone production. 
  • However, the factories suffered hours of power blackouts on Tuesday evening.
  • Apple is likely to launch its latest iPhones during the fall.
  • Foxconn will donate around $15.5 million for the calamity that has claimed at least 25 lives and affected over 1.2 million. Apple will also contribute an undisclosed sum.
  • On Wednesday, Foxconn allowed most employees to take time off or work from home while some assembly lines were still running. 
  • Taipei's Isaiah Research estimates Apple to produce 130 million-140 million iPhones in the second half of the year, up 8% year-on-year. Of those, 80 million-85 million will be the latest iPhone 13 model.
  • Price action: AAPL shares traded lower by 0.83% at $144.93 on the last check Wednesday.
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