A top iPhone manufacturer reopened one key factory in China and won approval to reopen another amid concerns that the coronavirus outbreak could dent Apple's smartphone sales, according to a new report.
While the restart of production is positive, only 10% of the factory's workforce has managed to return, according to Foxconn.
In the note, Kuo describes the status of several of Apple's main suppliers as workers prepare to return to factories to resume production of Apple products.
Depending on when Apple vendor factories reopen, there could be a significant impact on device supplies, which would result in longer shipping and waiting times for new devices and possible delays for devices that are rumored to be They will launch at the beginning of the year as the iPhone of low cost.
Well-known Apple analyst Ming Chi-Kuo previously said iPhone deliveries could be cut 10% this quarter, an estimate that Trendforce supported today and lowered the forecast to 41 million phones.
Pegatron's facility in Kunshan, on the other hand, hasn't resumed production yet.
Authorities in the manufacturing hub of Shenzhen will check the plant again later this week to ensure virus control measures are properly in place, the person said, adding that employees there were told not to return to work on Tuesday. It did not give further details.
Its shares fell as much as 2.4 percent, underperforming a 0.3 percent decline in the broader market.
Experts have been warning about the coronavirus's effect on the consumer tech industry and now it looks like iPhone production is going to have to slow down significantly due to reduced numbers of factory staff. They have been advised to put on masks, follow a specific dining system and go through temperature checks, as per internal memos spotted by Reuters.
The source said senior Taiwanese officials who needed to return to China had to first get approval from Foxconn's new Chairman Liu Young-Way.
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.