The plans to gradually shift the iPhone production outside of China will undergo a sudden acceleration due to the new outbreaks of Covid-19 which first slowed down and then suspended activity in the country’s plants. The analyst reports it Ming-Chi Kuoaccording to which the Taiwanese giant will increasingly rely on its own factories in India to ensure an adequate level of iPhone 14 production.
Therefore, Foxconn and Apple’s plans are changing: according to the information gathered along the supply chain, we will go far beyond the previously set objectives, aiming to ship from India in the medium-long term “up to 40-45% of iPhones against the current 2-4%“, says Kuo. Who adds:”as a result, iPhones manufactured by Foxconn in India will grow at least 150% year-over-year in 2023“.
The latest outbreaks have spawned panic among workers who, to avoid the lockdown inside the factories, tried to escape by climbing over the enclosure walls. In the last few days, iPhone production would have been reduced by 30% before the one-week shutdown.
Foxconn is doing everything to avoid further slowdowns: it is trying to keep the extra workforce called for this initial phase by quadrupling the bonuses and, in fact, by moving production outside the Chinese borders with the hope that elsewhere – namely in India – the sanitation situation is better.
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