Tightening restrictions on COVID-19 in China may cause a 30% drop in iPhone production. This is one of the largest manufacturing factories of Apple Inc. in the world.
In Shenzhen, the Foxconn manufacturer's plant is working to increase production to compensate for shortages.
The company's main factory is in Zhengzhou. It has about 200,000 workers. Employees experienced a shock when strict measures were applied to control the spread of COVID-19, and some people left the factory on the weekend.
Foxconn made a statement that it would coordinate production with other factories to control the situation and reduce any potential impact.
Foxconn provides 70% of the iPhone's supply worldwide. The company is the largest iPhone manufacturer for Apple and produces iPhones in India. But most of the products are assembled at the Zhengzhou factory.
China now has an ultra-strict control policy. According to it, factories in virus-affected regions can stay open under the condition that they operate in a "closed cycle" system. That is, personnel live and work directly in the factory. According to the company, such arrangements create numerous difficulties for workers.
The closed-cycle system was first introduced at Foxconn's small factory in Shenzhen in March and July of this year. The reason was the high incidence of COVID-19.