Trendforce cuts iPhone estimate after Foxconn delay

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"Reuters also reports that "'company executives were trying very hard to negotiate with authorities to resume production in other parts of China, including Kunshan".

Taiwan's Foxconn was not allowed to resume production in its plant in the southern Chinese city of Shenzhen that had been shut due to the coronavirus outbreak, a person with direct knowledge of the matter told Reuters today. This includes ensuring that all factory workers wear masks, go through temperature checks, and more.

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According to new information from ReutersOfficials in the Longhua District of Shenzhen, where Foxconn's largest factory is located, said the report was false and that it was still conducting controls.

On the other hand, a later report from Reuters noted that Foxconn was given the green light to open its other plant in Zhengzhou and possibly Shenzhen as well, although thus far only 10% of its workforce has actually shown up for work. Kuo claims that only between 40 - 60% of the workforce present before the Lunar New Year holiday period began will be returning to work this week, having been held back an extra week due to the viral outbreak. This plant was scheduled to resume production on February 2 but that has been delayed by at least a week. After reviewing the factories, Chinese health authorities have informed Foxconn that there are high risks of coronavirus infection and therefore are not suitable to restart work.

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Reliable Apple analyst Ming-Chi Kuo already slashed his forecast for iPhone shipments in the first quarter by 10%, citing the coronavirus outbreak for the sizable disruption. Apple is believed to have built up a stockpile of iPhone 11 and iPhone 11 Pro units over the past few months in addition to older smartphones such as the iPhone XR.

Foxconn's Zhengzhou site, which Kuo says is the most critical production site for the iPhone 11 and the next low-priced iPhone, is experiencing significant delays.

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Although the company, which is internationally known as Foxconn Technology Group (富士康科技集團), last week said it aimed to resume full production in China by yesterday, only about 16,000 employees, or less than 10 percent of its workforce, have returned to work at the Zhengzhou plant.

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