Foxconn sales plummet after lockdown riot at Chinese iPhone factory

Apple supplier Foxconn suffered a sharp drop in sales after strict Covid rules led to a workers’ revolt at a Chinese factory.

Foxconn, which makes an estimated 70 percent of iPhones, posted sales of £14.8 billion in November, down 29 percent from October and 11 percent year-on-year.

It is normally an important month for the Taiwan-based company as production ramps up before Christmas.

But production was disrupted after discontent at one of the largest factories in the Chinese city of Zhengzhou.

A series of lockdowns across the city cut staff off from the outside world – leading to reports of some climbing wire fences to flee, while others protested against payment.

Yesterday, the company said the situation was “under control”. “In addition to reallocating production capacity from various factories, we have also started recruiting new employees and are gradually moving towards restoring capacity,” said a spokesman.

“The outlook for the fourth quarter is expected to be roughly in line with market consensus.”

A month ago, Apple warned that deliveries of its iPhone 14 Pro and iPhone 14 Pro Max would be lower than previously expected and that customers would have to wait longer due to Covid restrictions at the factory that would cause the company to operate “significantly”. reduced capacity’.

Dan Ives, an analyst at Wedbush Securities, said the “swamp” of recent months in China would result in iPhone shortages for Apple of 10 million to 15 million units “in this all-important holiday season.”