Foxconn Raises COVID-19 Concerns as “Revenue Growth Will be Flat” For The Current Quarter
Previously, Foxconn confirmed that the most prominent iPhone plant in Zhengzhou, China which handles almost 80 percent of the total iPhone production on a global scale was affected heavily due to the COVID-19 outbreak. Apple did not sweat much on the scenario and called it “controllable”. However, the situation inside the plant was much direr and workers had to leave for home despite Foxconn’s attempts to lure them with bonuses. Ultimately, this led Foxconn to announce a lockdown for an entire week. Foxconn’s plant in Zhengzhou is crucial for Apple as it is responsible for manufacturing a major chunk of the total iPhone demand. Today, Bloomberg reports that Foxconn’s current quarter has taken a massive hit, stating that the “revenue growth will be flat for the current three-month time period.” Amidst iPhone production concerns, the Chinese government is facing growing economic and political pressure for the termination of its zero-COVID-19 policy. The policy aims to end COVID-19 with city-wide lockdowns throughout the country. We will keep you guys updated with the latest, so be sure to stick around for more details. The company, known also as Foxconn, reported earnings that missed estimates for the third quarter and said revenue growth will be flat for the current three-month period. Hon Hai is now trying to resume full production after a coronavirus flareup in October triggered a lockdown last week around its biggest factory in Zhengzhou, severely curtailing the flow of goods and people it needs to sustain iPhone assembly. Share your thoughts with us in the comments below. News Source: Bloomberg
