Foxconn reduces iPhone 12 production capacity by more than 50% in India because of Covid-19

According to sources familiar with the matter, production of iPhone 12 at Foxconn’s factory in India has decreased by more than 50% because many employees are infected with Covid-19 and have to take time off work.

Production of iPhone 12 at Foxconn’s factory in India fell by more than 50%. (Source: Reuters) Foxconn’s facility in the southern Indian state of Tamil Nadu specializes in manufacturing iPhones for India, the world’s second-largest smartphone market. Tamil Nadu is one of the hardest hit states in the second wave of Covid-19 that is sweeping across India. Authorities have imposed a complete blockade in the state since May 10, suspending public transport and closing shopping centers to prevent the number of infections from increasing. Reuters Citing two sources, more than 100 Foxconn employees in the state have tested positive for Covid-19 and the company has issued a ban on entering the Chennai factory until the end of May. A source stated that employees were only allowed to leave the factory but not enter since yesterday and only a small part of production is being maintained. Currently, the company has cut more than 50% of the factory’s capacity. However, the sources did not specify the capacity of the plant and did not say how many employees work at the facility. India has benefited from Apple moving some manufacturing from China to other markets. The company announced in March that it had begun assembling iPhone 12 in India. Although Apple’s market share is quite small in the mainly low-cost Indian market, Chief Executive Tim Cook said in January that its business in India doubled in the fourth quarter. 2020 year-over-year, thanks to the launch of an online store. According to market research firm Canalys, Apple’s growth momentum in India continued in the first quarter of 2021, with the business shipping more than one million iPhones. Demand for iPhone 12 is driven by domestic assembly and attractive financial incentives. Foxconn is not the only manufacturer in India affected by the raging Covid-19 epidemic. Nokia and Chinese smartphone maker Oppo last year also suspended production at their factories in the South Asian country after employees tested positive for Covid-19. Meanwhile, technology research firm TrendForce based in Taipei, Taiwan (China) on May 10 lowered its forecast for global smartphone output growth this year from 9.4% to 9.4%. 8.5%, citing that the outbreak in India is affecting major suppliers such as Samsung and Apple. (according to Reuters)