Image Source: Ken Kobayashi
The country’s major assembler of Apple’s iPhones, Foxconn, have said they had no problem dealing with the negative impacts caused by Covid lockdowns in China – Nikkei Asia said on Tuesday.
It’s been a rough few months for China as they struggled with an unprecedented surge in Covid cases. Two months ago, it was announced that major cities, including Beijing and Shanghai, would be put into lockdown due to the increase of infections around the areas.
It wasn’t long until Foxconn said it had to temporarily halt its operations in Shenzen, a manufacturing hub in China where it was producing several of Apple’s products like iPhones, iPads, and Macs, among others.
After the lockdowns were put in place, Apple announced that it might suffer from revenue reaching around $8 billion. “Covid is difficult for analysts and investors alike,” told Apple CEO Tim Cook to a group of analysts in a conference call after the company declared its quarter two fiscal results.
However, the Chairman of Foxconn has said that they were not as impacted by the incident as they initially thought. This led Foxconn’s team to have a better outlook for both the next quarter and the whole year. Currently, Foxconn is doing its regular operations at the usual pace.
The news does not mean that Apple is not at all negatively affected by the Covid-19 lockdowns. The company still suffers from constraints; however, the report by Nikkei Asia says that the current conditions in the company are better than they had anticipated – and things are improving for the manufacturer.
“The overall lockdown impact on Foxconn is rather limited,” Young-way said. “You can tell from our revenues in April, and May’s performance is also better than we estimated.”
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