Foxconn's Largest iPhone Plant In China Nears Resuming 100% Production

  • Apple Inc's AAPL crucial supplier Hon Hai Precision Industry Co Ltd HNHPF Foxconn Technology Group, has brought the largest iPhone plant to about 90% of anticipated peak capacity.
  • The update implied Apple's biggest production partner had secured enough workers despite a Covid resurgence and recent staff uproar, Bloomberg reports.
  • Foxconn doled out bonuses to attract new workers and convince those still there to stay on. 
  • Foxconn reportedly aimed for the plant to resume total production around late December to early January while also remaining cautious regarding the pandemic resurgence, Reuters reports.
  • Foxconn's plant in the central Chinese city of Zhengzhou operated with 200,000 staff, or about the average staffing level, a local daily reported, citing Foxconn executive Vic Wang. 
  • As of December 30, the plant shipped at 90% of the peak capacity forecast at the start of last year.
  • Foxconn's speedy bounce-back bodes well for the production of Apple's marquee product as it gears up for the Lunar New Year shopping season. 
  • A nationwide Covid flare-up after Beijing abruptly dropped most Covid Zero-era curbs had clouded the prospects for manufacturers like Foxconn, which required armies of workers to keep factories buzzing. 
  • The recent outburst followed weeks of turmoil at the Zhengzhou plant known as iPhone City, which produces the vast majority of high-end iPhone 14 Pro and Pro Max devices.
  • The phenomenal disruption, in turn, fueled concerns about iPhone production over the critical holiday period.
  • Price Action: AAPL shares closed higher by 0.25% at $129.93 on Friday.
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