Foxconn says COVID lockdowns aren't hurting Apple supply chain as much as expected
The forecast is better than expected, even with complications like the pausing of operations in the manufacturing hub of Shenzhen, China.
One of Apple’s major iPhone assemblers, Foxconn, has recently been assessing the supply chain impact of China’s ongoing COVID lockdowns after it had to pause operations in late March in the manufacturing hub of Shenzhen. These operations include the manufacturing of iPhones, iPads, and Macs.
Because of this, Apple investors expressed concern last month that fiscal third-quarter sales could be impacted by as much as $8 billion as a result, as reported by outlets by CNBC. Fortunately, that doesn’t appear to be the case. As pointed out by Foxconn Chairman, Liu Young-way, the impact hasn’t been as bad as anticipated and as a result, Foxconn has raised its “outlook for the current quarter and the full year as a result” according to Nikkei Asia.
Furthermore, Nikkei Asia reported that operations at manufacturing facilities have been at normal levels “under closed-loop management measures, which restrict movements in and out of factories and company dormitories.”
Even though things are looking better than expected in terms of operations, Foxconn will reportedly continue to monitor the COVID lockdown situation in China as it’s anticipated these measures will continue to happen.
In terms of revenue, Foxconn recorded $16.76 billion in April, down 4.1 percent from March. However, these numbers aren’t as severe as other assemblers like MacBook manufacturer Quanta Computer have seen, with revenues falling by as much as 40 percent in March as a result of Shanghai lockdowns.
It’ll be interesting to see if Foxconn can continue to hold things steady, and what sort of revenue it’ll report for May, which the company is set to disclose in early June. Until then, we’re curious what your thoughts are on the minimal impact the Shenzhen lockdowns have reportedly had on Foxconn.
Do you expect this will continue to be the case? Let us know in Chatty, and for more on Foxconn also be sure to read our coverage of Lordstown Motors (RIDE) closing a deal to sell its Ohio GM facility to Foxconn.
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replyMorgan Shaver posted a new article, Foxconn says COVID lockdowns aren't hurting Apple supply chain as much as expected
