"Foxconn to Increase iPhone Shipments by 30% Amid Employee Walkouts"

"Zhengzhou Factory Likely to Face Difficulties Normalizing This Month"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Yujin Cho] There are forecasts that this month's iPhone shipments could decrease by 30% more than initially expected due to consecutive employee departures at Foxconn's factory in Zhengzhou, Henan Province, the largest manufacturing base for Apple iPhones in China.

On the 26th, Taiwan Central News Agency, citing sources familiar with the matter, reported this, as covered by major US media outlets. Foxconn's Zhengzhou factory is responsible for 80% of the global shipments of the iPhone 14 series. Sources said the possibility of the factory returning to normal production this month is very low.

Victoria Skaller, Head of Investment at the UK online investment platform Interactive Investor, said, "The large-scale protests by Foxconn Zhengzhou factory workers could affect Apple's iPhone shipments this month."

Consumer companies are also on edge ahead of the year-end peak season. US major retailer Best Buy stated, "Premium iPhones are expected to experience shortages during this year's shopping season."

Bloomberg reported on the 7th that due to the impact of Foxconn Zhengzhou factory workers returning home, Apple plans to cut its production target for the iPhone 14 series by more than 3 million units compared to the original plan this year.

Foxconn also revised its Q4 outlook from "cautiously optimistic" to "downward adjustment" due to production disruptions at the Zhengzhou factory.

Last month, when COVID-19 broke out in the factory, workers, feeling anxious, collectively fled and returned to their hometowns.

The company recently hired 100,000 workers and aimed to normalize operations by the end of this month, but these new workers also held a large-scale protest on the 22nd over wage issues and left the factory en masse after receiving 10,000 yuan (approximately 1.86 million KRW) per person.