Foxconn iPhone Factory Almost Back?
According to comments by a Foxconn (2354.TT) manager, the company plant in Zhengzhou, known as “iPhone City” has worked its way back to ~90% of its peak capacity, or so says local state media. As we have previous noted, the factory was faced with both worker protests and a rapid loss of workers as the country’s leadership remained steadfast in its COVID-19 lockdown policies last year. Foxconn has been offering pay and bonus incentives to draw back workers or hire new ones, but until the government loosened lockdown policies, the factory remained underutilized and large customers, particularly Apple (AAPL), faced shortages as production slowed.
November sales for Foxconn were down 11%, with the Zhengzhou plant and while that is important to the company, the production numbers from that plant contributed ~60% of the import/export flow for the entire Henan province and ~80% of the same for the capital city of Zhengzhou, with half of the province’s import/export value being from mobile phones during the 1st three quarters of 2022. That said, the December number from Foxconn will prove out whether the return to near full production rings true, as state media tends to paint a rosy picture, but the Chairman of Foxconn did tell employees in his New Year address that 2022 was a challenging year but warned that 2023 “…may see a more difficult and challenging path…”
November sales for Foxconn were down 11%, with the Zhengzhou plant and while that is important to the company, the production numbers from that plant contributed ~60% of the import/export flow for the entire Henan province and ~80% of the same for the capital city of Zhengzhou, with half of the province’s import/export value being from mobile phones during the 1st three quarters of 2022. That said, the December number from Foxconn will prove out whether the return to near full production rings true, as state media tends to paint a rosy picture, but the Chairman of Foxconn did tell employees in his New Year address that 2022 was a challenging year but warned that 2023 “…may see a more difficult and challenging path…”
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