Amid a fresh round of COVID-19-related lockdowns in China, protests have erupted across the country, challenging the strict “zero-COVID” policy. These protests not only criticize the harsh lockdown measures but also highlight hazardous working conditions, as seen at a Foxconn factory.
Following the lockdowns, around 200,000 factory workers were confined within the premises to prevent a potential COVID outbreak. Some employees escaped the factory at night, seeking safety and joining street demonstrations. Even those who stayed resorted to aggressive actions like damaging equipment in protest.
The unrest at the Foxconn factory has disrupted the production of iPhones, affecting Apple, its main partner. Analysts estimate the factory is now lagging behind in producing approximately 6 million units, leading to a decline in Apple’s stock value.
$AAPL “It is estimated that Apple is losing about $1 billion per week in iPhone sales due to the shutdown and unrest. As much as 5% of iPhone 14 sales may be impacted by the severe shutdowns in China.”
Losses could reach up to $8 billion.https://t.co/2oChiD1pN9
— kakashii (@kakashiii111) November 27, 2022
“We anticipate that Apple is facing significant iPhone shortages, potentially resulting in a decrease of at least 5% of units this quarter, with a possibility of up to 10%, depending on the developments at Foxconn,” noted Wedbush analyst Dan Ives in an investor’s note.
As of now, Apple has not issued any official statements on the issue. Foxconn has pledged to mediate talks between the workers and the Chinese government to ease the tensions.
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