Topline
The world’s largest iPhone manufacturing facility in Zhengzhou, China will resume full production between late December and early January, according to Reuters, after a worker revolt at the plant over delayed payments and poor living conditions caused by harsh zero-Covid measures disrupted the factory last month.
2: A man passes by a compound of the electronics manufacturer Foxconn, which is under strict access … [+]
Key Facts
Plant operator Foxconn—one of Apple’s major suppliers—has begun hiring new workers as it attempts to scale up production once again, Reuters reported citing an unnamed source.
If the recruitment drive—which is being aided by the local government—goes to plan, full production could resume in “around three to four weeks,” according to the report.
Foxconn’s hiring drive comes just weeks after nearly 20,000 disgruntled workers accepted the company’s offer of ¥10,000 ($1,400) compensation to leave the plant.
The recent turmoil at the plant, including worker protests and harsh Covid restrictions, has been “stabilized,” the report adds.
While Apple has managed to somewhat diversify its iPhone manufacturing line—with contractors making some of its devices in India and Vietnam—a majority of the flagship iPhone 14 Pro models are assembled in the Zhengzhou factory.
News Peg
The recent manufacturing struggles in China have prompted Apple to speed up its plans to move some manufacturing outside China, the Wall Street Journal reported Saturday. According to the report, Apple has begun pushing its suppliers to move the assembly of its products to other countries like Vietnam and India—both of which already manufacture the baseline iPhone 14 along with a few older models.
Big Number
6 million. That is the expected shortfall in the production of the iPhone 14 Pro and Pro Max that Apple is likely to face due to the recent disruption at the Zhengzhou plant. Apple had initially planned to manufacture 90 million iPhone 14 series phones by the end of this year.
Key Background
Last month, violent clashes broke out between security personnel and workers at Foxconn’s Zhengzhou facility known as “iPhone City.” The protest had reportedly been triggered by poor living conditions and concerns over delayed bonus payments. Due to China’s harsh Covid control measures, workers were forced to live on-site in a closed bubble—only being allowed to move between the factory floor and their dorms. The workers were also angered by reports that they would not receive a bonus payout promised to them unless they stayed at the factory until March. The bonus payments were a key incentive that was used to lure new recruits to the plant after hundreds of workers fled the factory in October—fearing stringent Covid restrictions following a breakout at the plant. The clashes at ‘iPhone City’ also took place in the backdrop of massive protests across the country against China’s rigid zero-Covid stance—which involves harsh lockdowns and repeated mass testing.
Further Reading
Foxconn sees COVID-hit China plant back at full output in late Dec-early Jan -source (Reuters)
Apple Reportedly Faces Shortfall Of 6 Million iPhones Amid China Factory Protests (Forbes)
Source: https://www.forbes.com/sites/siladityaray/2022/12/05/worlds-biggest-iphone-factory-will-restart-full-production-by-early-january-after-protests-reports-says/