Foxconn Cuts Revenue Outlook Following Coronavirus Outbreak
Apple's primary iPhone assembler Foxconn has slashed its 2020 revenue outlook after strict quarantines at its main base in China to guard against the coronavirus outbreak (via Bloomberg).
The company is now projecting a sales increase of 1% to 3% this year, Chairman Young Liu told Bloomberg News in a text message. That’s down from a Jan. 22 forecast of 3% to 5%, before the epidemic spread around the globe, and lags the 5.4% average of analysts' projections.
Foxconn's Zhengzhou plant won't resume production until February 10 following an extended Lunar New Year break, and the company now says that workers returning from outside Henan province will be sequestered for 14 days, while staff who reside within the province will be isolated for one week.
The manufacturer previously claimed the viral outbreak had had a "fairly small impact" on iPhone production, suggesting its factories in other countries like Vietnam, India, and Mexico had been able to fill the gap.
Apple last week closed all of its corporate offices, stores, and contact centers in mainland China through February 9 due to the Wuhan coronavirus outbreak. Apple has around 10,000 direct employees in China, across its retail and corporate divisions.
Close to 60 million people remain under lockdown in China. With the virus death toll rising in recent days, the goal of people returning to work on February 10 is looking increasingly less certain. As a result, the contagion is expected to disrupt Apple's Chinese iPhone supply chain as well as dampen consumer demand and overall economic growth.
The outbreak has killed 492 people worldwide, the majority of which are in China, and infected more than 24,500 people across 25 countries.
Popular Stories
Apple is ending its credit card partnership with Goldman Sachs, according to The Wall Street Journal. Apple plans to stop working with Goldman Sachs in the next 12 to 15 months, and it is not yet clear if Apple has established a new partnership for the Apple Card. Apple and Goldman Sachs will dissolve their entire consumer partnership, including the Apple Card and the Apple Savings account....
Apple with iOS 17.1 and watchOS 10.1 introduced a new NameDrop feature that is designed to allow users to place Apple devices near one another to quickly exchange contact information. Sharing contact information is done with explicit user permission, but some news organizations and police departments have been spreading misinformation about how functions. As noted by The Washington Post,...
As the end of 2023 nears, now is a good opportunity to look back at some of the devices and accessories that Apple discontinued throughout the year. Apple products discontinued in 2023 include the iPhone 13 mini, 13-inch MacBook Pro, MagSafe Battery Pack, MagSafe Duo Charger, and leather accessories. Also check out our lists of Apple products discontinued in 2022 and 2021. iPhone Mini ...
Apple will likely release iOS 17.1.2 this week, based on mounting evidence of the software in our website's analytics logs in recent days. As a minor update, iOS 17.1.2 should be focused on bug fixes, but it's unclear exactly which issues might be addressed. Some users have continued to experience Wi-Fi issues on iOS 17.1.1, so perhaps iOS 17.1.2 will include the same fix for Wi-Fi...
Apple is wrapping up development on iOS 17.2, with the update expected to come out in December. While we're getting to the end of the beta testing period, Apple is still tweaking features and adding new functionality. We've rounded up everything new in the fourth beta of iOS 17.2. Default Notification Sound Under Sounds & Haptics, there's a new "Default Alerts" section that allows you to ...
At WWDC in June 2022, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, increased personalization, and more. Apple's website still says the first vehicles with support for the next-generation CarPlay experience will be announced in "late 2023," but it has not shared...
Google Drive users have been warned not to disconnect their account within the Google Drive for desktop app, after a spate of reports of files going missing from the cloud service. Alarm bells began ringing last week on Google's community support site when some users reported files mysteriously disappearing from Google Drive, with some posters claiming six or more months of data had...
Top Rated Comments
Right isn’t that ridiculous short term is just a casino. As Buffett says I don’t buy a farm because I think it’s going to rain next week I buy it for decades of production and profit.
But the issue that everyone has to keep in mind is that even if you aren't assembling your products in China all of the components or a majority of them are still coming from China. Which is why Foxconn's ability to keep up production at their other facilities will still be hampered.
Most people don't seem to get that China not only has skilled labor, it's also where R&D and production of the components happens. The iPhones assembled in India for example, are based on knock-down kits from China.