Foxconn, the Chinese factory that manufactures Apple iPhones, has reported that its revenue for November came to $14.7B, down more than 29% from October and more than 11% from November 2021. According to Foxconn, the decline was brought on by manufacturing progressively moving into its off-peak seasonally and some shipments being affected by the pandemic in Zhengzhou.
Foxconn fought to contain the Covid outbreak that rocked the Zhengzhou factory in the latter part of October but workers at the facility fought with security guards last month, and some of them vented their frustrations on social media about what seemed to be a delay in incentive payments. Foxconn then launched a round of bonuses last month in an effort to lure workers back to the factory, but did not address its employee dissatisfaction and instead stated that the Covid pandemic was under control.
Why it matters
Apple depends on the Zhengzhou factory for the majority of its iPhone output. The production of between 5 million and 8 iPhone units, in the December quarter, according to analysts at Evercore ISI, may be impacted by the problems at Foxconn which may result in a $5B to $8B decline in Apple's revenue.