Apple Suppliers Aim to Restart Production by February 10 Despite Coronavirus Outbreak

Foxconn

Major Apple suppliers in China plan to resume full-fledged production from February 10 despite the coronavirus outbreak.

Foxconn’s Hon Hai plans to restart production once again in its facilities in China from February 10. Other major suppliers like Quanta Computer, Inventec Corp, and LG Display will also resume production in their facilities from next week.

A report from yesterday had claimed that Foxconn had seen a “fairly small impact” on its production line due to coronavirus outage. The Chinese government has currently put much of the country in lockdown to prevent the spread of the virus. All major companies have been ordered to shut down their offices until at least February 9.

Apple has also shut down its corporate offices, stores, and offices in China through February 9 as a precautionary measure. The company has nearly 10,000 employees in China working across its corporate offices and retail stores.

Foxconn assembles the iPhone at its Zhengzhou plant in China which is located almost 500KM from Wuhan. Despite that, the company had to stop production for the safety of its workers and to abide by the government orders. If the Chinese government ends up pushing the deadline further then Apple suppliers will have to delay resuming production as well. The production halt could also delay Apple’s plans to launch the iPhone 9 in March. While Foxconn could shift some of the production of the device outside of China, it is not going to be enough to meet its potential demand.

Apple is not the only one whose supply-chain has been affected by the coronavirus outage. The production of Huawei smartphones has also been affected along with other Android OEMs. Apple is expected to see a 10% decline in iPhone sales due to the coronavirus outbreak.

[Via Bloomberg]

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