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).

foxconn iphone 7

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.

Top Rated Comments

DelayedGratificationGene Avatar
24 months ago
Well it’s not like Starbucks where if no coffee you lose that sale forever if people can’t get the iPhone now they will wait and get in a month from now. The sale is not lost just pushed out so it’s a non event


financial outlooks seem to balance on razor sharp metrics
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.
Score: 4 Votes (Like | Disagree)
Scottsoapbox Avatar
24 months ago

Well it’s not like Starbucks where if no coffee you lose that sale forever if people can’t get the iPhone now they will wait and get in a month from now. The sale is not lost just pushed out so it’s a non event
Wrong! Factories have capacities. They can make a maximum XX iPhones each day so being closed is fewer iPhones made and sold. And all of the expensive manufacturing equipment still have to be paid for (i.e.come out of their profits) even if not being used.
Score: 4 Votes (Like | Disagree)
macnchiefs Avatar
24 months ago
I work for a company that used to manufacture in China but now we are spread out into Malaysia and Taiwan.(Trump's tariffs did have an impact)

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.
Score: 2 Votes (Like | Disagree)
Bin Cook Avatar
24 months ago
Virus outbreaks are great opportunity to un-hide any skeletons on your balance sheet.
Score: 1 Votes (Like | Disagree)
Expos of 1969 Avatar
24 months ago

If their operations in China completely closed they would expand operations in India and other locations at a faster pace (its in the works to do so to some degree anyway).

People who want an iPhone will just wait. Its not as if they are going to get one from someone other than Apple.
And some may pause, do some research, talk to others and decide to move away from Apple.
Score: 1 Votes (Like | Disagree)
JPack Avatar
24 months ago

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.
This.

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.
Score: 1 Votes (Like | Disagree)

Popular Stories

airtag in hand

Apple AirTag Linked to Increasing Number of Car Thefts, Canadian Police Report

Friday December 3, 2021 7:10 am PST by
Apple's AirTags are being used in an increasing number of targeted car thefts in Canada, according to local police. Outlined in a news release from York Regional Police, investigators have identified a new method being used by thieves to track down and steal high-end vehicles that takes advantage of the AirTag's location tracking capabilities. While the method of stealing the cars is largely ...
macbook pro 13 inch banner

Apple Planning Five New Macs for 2022, Including Entry-Level MacBook Pro Refresh

Sunday December 5, 2021 7:55 am PST by
Apple is working on five new Macs for launch in 2022, including a new version of the entry-level MacBook Pro, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman said that he expects Apple to launch five new Macs in 2022, including: A high-end iMac with Apple silicon to sit above the 24-inch iMac in the lineup A significant MacBook Air...
apple watch series 7 aluminum colors

2022 Apple Watch Lineup Rumored to Include New Apple Watch SE and 'Rugged' Model for Sports

Sunday December 5, 2021 8:22 am PST by
Apple is planning an entire revamp of its Apple Watch lineup for 2022, including an update to the Apple Watch SE and a new Apple Watch with a rugged design aimed at sports athletes, according to respected Bloomberg journalist Mark Gurman. Writing in the latest installment of his Power On newsletter, Gurman said that for 2022, alongside the Apple Watch Series 8, Apple is planning an update to ...
MBA Mock White Front Blue

2022 MacBook Air Getting Major Display Upgrade With One Drawback

Friday December 3, 2021 3:01 am PST by
Apple's next-generation MacBook Air is reportedly set to bring over many of the new MacBook Pro's features, with one noticeable omission, according to recent reports. The latest MacBook Pro models feature a mini-LED "Liquid Retina XDR" display with deep blacks and support for up to 1,600 nits peak brightness. The display also features Apple's "ProMotion" technology, which is capable of...
ipad air arrive feature

iPad Pro With Wireless Charging, iPad Air 5, and iPad 10 Reported to Debut in 2022

Sunday December 5, 2021 8:54 am PST by
Apple is preparing to update three of its iPad models in 2022, including the entry-level iPad, iPad Air, and iPad Pro, according to Bloomberg's Mark Gurman. In his latest "Power On" newsletter, Gurman reiterated Apple's plans to release a new iPad Pro in 2022, featuring a new design and wireless charging, and clarified the company's intention to release new versions of the entry-level iPad...
Top Stories 87 Thumbnail

Top Stories: iPhone SE 3 in Early 2022, macOS Monterey Tips, AirPower Revival, and More

Saturday December 4, 2021 6:00 am PST by
The rush of Black Friday deals has passed, and while there's likely still some holiday shopping to be done, attention is also turning back to rumors with a look ahead to what we can expect in 2022. Rumors this week included the next iPhone SE reportedly coming early next year and a multi-device charger similar to Apple's canceled AirPower, while we also took a look at what we might see for a ...