Foxconn's HQ will not re-open on February 10

The speed at which Foxconn production has resumed following the coronavirus closures and slowdowns has ‘exceeded expectations,’ according to company founder Terry Gou.

The company hasn’t, however, revealed what those expectations were, and it has warned that there may be supply-chain problems ahead …

Apple’s primary iPhone assembler had previously said that its February revenue dropped by more than $1.6B as a result of some plants being closed and others poorly-staffed. This was the company’s biggest fall in production in seven years.

Gou told South China Morning Post and others that there was a mix of good and bad news.

Gou told reporters in Taipei that the return to work effort at Foxconn’s factories in China had “exceeded our expectations and imagination”, and that supplies to its plants there and in Vietnam had returned to normal.

Gou, however, warned about weak consumer demand […] “In the United States, what we are worried about is the market,” he said. “If production was resumed quickly but consumers stop spending … that would be key to the economic recovery” […]

Gou said he has “concerns” over the electronics supply chain in Japan and South Korea, which are grappling with their own serious outbreaks of the coronavirus. He also cited rising prices for dynamic random-access memory chips and supply issues with display panels.

While Foxconn hasn’t provided any hard data on production capacity, we do know that the company expects to be back at full capacity by the end of the month, and today’s announcement seems to suggest that plan is on track.

Demand may indeed be the bigger issue now, as the coronavirus continues to spread. Italy is on full lockdown, with all but essential stores closed (including, of course, Apple Stores). The US is also implementing some lockdown steps which are likely to increase in severity and scale.

FTC: We use income earning auto affiliate links. More.

Jamf Apple device management

Check out 9to5Mac on YouTube for more Apple news:

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

About the Author

Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!

Ben Lovejoy's favorite gear