Published: 13:14, February 4, 2020 | Updated: 08:21, June 6, 2023
Apple suppliers aim to resume full China production on Feb 10
By Bloomberg

Workers line up for role call before entering their work stations at a Pegatron factory in Shanghai, China, on April 15, 2016. (QILAI SHEN / BLOOMBERG)

Apple Inc’s major suppliers in China, including iPhone-maker Hon Hai Precision Industry Co, plan to resume full-scale production in the country on Feb 10, despite the novel coronavirus outbreak.

Foxconn’s Hon Hai, the most important manufacturer for the US company, said Tuesday it still expects to be able to restart facilities throughout China on schedule, according to a text message sent to Bloomberg News. Suppliers such as Quanta Computer Inc, Inventec Corp and LG Display Co also said they would go back to work next week in China.

IPhone-maker Hon Hai Precision Industry Co and other suppliers such as Quanta Computer Inc, Inventec Corp and LG Display Co plan to go back to work next week

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Virtually all of the world’s iPhones are made in China, primarily by Hon Hai at its so-called iPhone City in Zhengzhou and by Pegatron Corp at an assembly site near Shanghai. Each of those locations is more than 500 kilometers away from Wuhan in central China, the epicenter of the viral outbreak.

“The main variable is whether the government will push back the time for resuming production, though it is not very likely given the complexities of organizing transportation for the returning migrant workers,” said GF Securities analyst Jeff Pu. He added that any potential labor shortage is a serious issue that weighs on the minds of suppliers.

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Apple said this week that it would close its corporate offices, stores and contact centers on the Chinese mainland through Feb 9.

Last week, Apple reported holiday-quarter revenue that beat Wall Street expectations on rebounding iPhone demand, sending its shares to a record. It issued a forecast that was wider than usual due to uncertainty over the development of the virus outbreak.

An Apple spokesman referred questions to Cook’s remarks last week that the company is monitoring developments in China closely and working with employees and partners in the region.

Apple has roughly 10,000 direct employees in China, across its retail and corporate entities. Its supply chain also has more than a million workers manufacturing products like the iPad, iPhone and Apple Watch.