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Mass resignations of iPhone workers after unrest, with report of 30% production loss

Mass resignations of iPhone workers | A crowded train station

There have been mass resignations of iPhone workers following the recent unrest at the plant, caused by Foxconn failing to pay the promised recruitment bonuses, and growing fears about the COVID-19 outbreak within the plant. More than 20,000 new hires are said to have left.

An internal estimate reportedly says that more than 30% of production could be lost, with iPhone 14 production already falling way behind demand in the crucial run up to the holidays …

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Foxconn admits pay error; offers compensation to those wanting to leave; Apple team on-site

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Foxconn admits it made a “technical error” that resulted in newly recruited iPhone workers being paid less than they had been promised. The admission follows violent clashes between workers and police at the world’s largest iPhone plant in Zhengzhou, China.

The company has pledged to correct the error for those who stay, and has offered compensation to any new recruits who no longer want to work there …

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Violent clashes between iPhone workers and police over unpaid bonuses, lack of food, poor COVID-19 management

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Violent clashes between iPhone workers and police have been seen in video footage from Foxconn’s primary iPhone assembly plant in Zhengzhou, China. You can see the video clips below.

Workers say that promised bonuses (referred to in local reports as “subsidies”) have not been paid; that there is inadequate food and medical supplies for workers locked into the facility; and that the company is failing to properly separate infected and uninfected employees …

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iPhone production crisis in China will see Foxconn quadruple workforce in India

iPhone production crisis | iPhone 14 on MacBook keyboard

The iPhone production crisis in China has led Foxconn to announce plans to quadruple its workforce in India. The move will not, however, solve the immediate problem.

While Apple and its suppliers have been working for years on reducing the company’s dependence on China as a manufacturing hub, progress has been painfully slow – especially for the iPhone …

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iPhone 14 production hit badly enough to reverse revenue growth, warns Foxconn

iPhone production | Downward trend on iPad graph

The COVID-19 disruption to iPhone 14 production at Foxconn’s primary assembly plant was bad enough for Apple to issue a warning about limited availability, and Foxconn has now issued a warning about the impact on its own prospects for the current quarter.

Foxconn says that revenue from consumer electronics assembly will fall in the all-important holiday quarter, which is usually a busy one for the company …

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iPhone City lockdown after COVID outbreak; unclear whether total closure

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The Foxconn plant in Zhengzhou – colloquially known as iPhone City – is entering a week-long lockdown from today, following a growing COVID-19 outbreak within the facility.

Given that the plant was already operating closed-loop production, where workers live and work within the campus for up to a month at a time, it’s not immediately clear what form the iPhone City lockdown takes, but one report refers to it as a “seven-day closure” …

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iPhone worker bonuses up by 1,000% as Foxconn fights to retain staff

iPhone worker bonuses

Foxconn has more than tripled iPhone worker bonuses as it fights to persuade them to remain working in extremely tough conditions amid a COVID-19 outbreak within its largest iPhone assembly plant.

For those who go further, and agree to forgo their leave this month, the bonus could amount to a 1,000% increase – from 1,500 yuan ($200) to 15,000 yuan ($2000) …

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iPhone workers walking out after COVID-19 outbreak; Foxconn offers bonuses for staying

iPhone workers walking out | Doctor in PPE

iPhone workers have reportedly been walking out in significant numbers after an outbreak of COVID-19 at the world’s largest iPhone assembly plant in Zhengzhou, China.

Some are worried about the risk of the infection, while others are unhappy about Foxconn’s stringent lockdown policies, which allow the plant to continue operations …

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Foxconn COVID-19 outbreak inside plant; impact on iPhone 14 production is ‘controllable’

Foxconn COVID outbreak | Nurse in PPE

A reported Foxconn COVID-19 outbreak in Zhengzhou – known locally as iPhone City – has been confirmed by the company, with some impact on iPhone 14 production.

However, Apple’s primary iPhone assembler says that the number of cases is low, and iPhone 14 production remains “relatively stable.” Foxconn has introduced tough lockdown rules to minimize the spread …

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‘Storming’ iPhone 14 Pro demand sees assembler Foxconn set new record revenue

iPhone 14 Pro demand | Phone seen under purple lighting

Analysts have given conflicting views on iPhone 14 sales, but lead assembly partner Foxconn has reported a new monthly revenue record on the back of “storming” iPhone 14 Pro demand.

The company said that it is positive on the outlook for the current quarter, though remains cautious about the potential impact of continuing supply chain issues and inflation …

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Strong Foxconn earnings helped by iPhone 13, but still working on reducing reliance on Apple

Foxconn earnings | Sunrise over Taipei

Foxconn earnings comfortably beat expectations during the second quarter of the year, coming in at NT$33.3B ($1.1B) against consensus projections of NT$30.8 ($1.02B).

Strong demand for the iPhone 13 made a direct contribution to the company’s income, of course, but it also indirectly helped with assembly of products for Sony and Dell …

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Foxconn COVID-19 latest: New outbreak prompts a return to closed-loop production

Foxconn COVID | Masked woman behind glass barrier

Full-on Foxconn COVID-19 precautions are back in effect, at the request of the city government in Shenzhen, China. The company has been asked to return to closed-loop production, where workers live in dormitory accommodation on the campus, and are prohibited from physical contact with anyone outside the factory complex – including family members.

While Foxconn is downplaying the measure, it is raising concerns about a repetition of Shanghai-style lockdowns that could create extremely difficult conditions for workers and other residents, as well as significantly disrupting production …

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Foxconn buys stake in China’s top chipmaker, seemingly without the necessary approval

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Primary iPhone assembler Foxconn has reportedly bought a stake in China’s top chipmaker, Tsinghjau Unigroup – but appears to have done so without the necessary government approval.

The move comes at a time when Apple is seeking to widen its chip supplier roster to guard against supply chain disruptions …

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Apple supplier Foxconn warns of slowing demand, and growing supply problems

Photo of empty Apple Store | Apple supplier Foxconn warns of slowing demand and supply

Today saw key Apple supplier Foxconn warn that revenue could slip this quarter due to both slowing demand and growing supply-chain problems.

The company’s chairman said that there were many uncertainties in the market, and that Foxconn would be looking to further diversify to reduce its dependence on smartphone assembly …

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iPhone City goes into immediate lockdown after COVID-19 outbreak; recruitment suspended

View across the river to modern buildings in Zhenhzhou | iPhone City goes into immediate lockdown after COVID-19 outbreak

The Chinese city of Zhengzhou – known locally as iPhone City as it’s home to the world’s largest iPhone factory – has been placed into immediate lockdown following the discovery of COVID-19 infections.

This will have an immediate effect on iPhone 13 production, and also impacts Apple’s preparations for later iPhone 14 assembly …

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Apple asked Foxconn to recruit iPhone 14 assembly workers early – Taiwanese report

Photo: iPhone 13 Pro teardown with tweezers holding camera module | Apple asked Foxconn to recruit iPhone 14 assembly workers early

Taiwanese media reports that Apple asked Foxconn to begin recruiting iPhone 14 assembly workers earlier than usual in China, alongside boosting recruitment of those working on iPhone 13 production at its Zhenzhou plant.

Foxconn has responded by boosting its recruitment bonus by 30% in what is generally an off-season for iPhone production …

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Primary iPhone factory in China now operating as normal, new COVID-19 precautions in place

Foxconn profits rise despite all in iPhone revenue

After China announced a few days ago a lockdown that impacted three main factories that manufacture Apple products, Foxconn now says it’s starting to operate the Zhengzhou factory “normally.” That said, ten of thousands of workers will have to undergo mandatory COVID-19 testing, which could present “a potential risk to a global supply of Apple’s signature device,” according to a new report.

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