Foxconn factory shut down, Apple production slows

usine Foxconn de Zhenghzou

The health situation is improving all over the world, and yet China is still hit by the virus. While the province of Shenzhen has just announced the implementation of containment, the latter risks having repercussions far beyond southern China.

Indeed, the Shenzhen area is the cradle of many factories in the Middle Kingdom due to its advantageous economic situation. Among the firms that have put their bags in Shenzhen, there is Foxconn, and therefore indirectly Apple. If the Apple brand does not have a factory per se, it subcontracts the assembly of these products to third-party companies, such as Foxconn, one of Apple’s privileged partners.

Big consequences for Apple

In statements released Monday and reported by Nikkei Asia, factories in Longhua and Guanlan owned by Foxconn suspended production until further notice. The company’s headquarters announced that production would be moved to other factories based in China.

For Apple, the closure of these two factories could have consequences for the production of the latest Mac Studio, presented last Tuesday. Indeed, Apple’s high-powered computer should have been built in these factories, so their closure will further increase delivery times. Today the latter can already wait several weeks for the most advanced configurations.

No return to work before March 20

The shutdown of these two factories could have general consequences for several Apple products, including the iPhone SE and iPhone 13 recently released by the Apple brand. Far from Cupertino, it is therefore the Hong Kong and Chinese health authorities that seem to be deciding the economic fate of the apple for the next few weeks.

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Political forces in the region have assured that this strict confinement should remain in force at least until March 20. On this date, the situation will be reassessed, and new measures may be announced so that work can resume, if the health situation allows.

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