A major assembler of Apple’s iPhones (Foxconn) said the impact of China’s Covid-19 pandemic lockdowns on its operations is not as bad as anticipated.
In late March, China enforced lockdowns in some major cities after an increase in coronavirus pandemic cases. At that time, Foxconn said it would stop its operations in Shenzhen.
Apple alarmed investors the previous month by warning that a fiscal decline in third-quarter sales by $8 billion due to supply chain constraints. After reporting fiscal second-quarter results Apple CEO Tim Cook said, “Covid is difficult to predict.”
Foxconn Chairman Liu Young-way said, “the company has seen a more limited impact from the lockdowns than it anticipated.”
According to Nikkei, “Key manufacturing facilities have been operating at normal levels and product development is ongoing.”
Young-way said, “The overall lockdown impact on Foxconn is rather limited. You can tell from our revenues in April, and May’s performance is also better than we estimated.”
