Jaromir Miko As the largest manufacturer of iPhones, Foxconn is beginning to perceive the risk caused by the coronavirus. In order to prevent its spread, the Chinese government is taking various measures, such as closing cities, extending mandatory holidays, and the option of temporarily closing factories to avoid infecting the workplace is also on the table.
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Foxconn has already been forced to suspend almost all factory activities in China until at least February 10. According to Reuters sources, there is a real possibility that the government will order an extension of the holiday, which would already have a noticeable impact on the availability of products, including those from Apple, despite the fact that the Californian company has assured investors that it has replacement manufacturers available. However, Foxconn's Chinese factories are the largest producer of Apple products in the world, and therefore it is possible that even substitutes will not be able to turn the situation around in Apple's favor.
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Foxconn has so far seen little impact from the disease on production and has increased production in other countries including Vietnam, India and Mexico in response to the furlough. These factories could show unusually high activity even after production in China resumes to catch up on lost profits and meet orders. Apple now has to face the fact that the activities in the factories that produce the iPhone are suspended for the time being until the end of this week. The centralized Chinese government and its regional structures may decide on a further postponement in the coming days.
Neither Foxconn nor Apple have yet responded to the Reuters report. But Foxconn has ordered employees and clients from Hubei province, whose capital is Wuhan, to report their health status every day and not to go to factories under any circumstances. Despite the absence at the workplace, employees will receive their full salary. The company has also launched a program where employees can report those who do not follow the measures introduced in connection with the coronavirus for a financial reward of 660 CZK (200 Chinese yuan).
To date, there have been 20 cases of illness and 640 deaths caused by the 427-nCoV virus. Map of the spread of the coronavirus is available here.
Source: Reuters
