Good news for Apple: China lifts Covid lockdown in iPhone city

From Juliana Liu's "China’s Zhengzhou, home to world’s largest iPhone factory, ends Covid lockdown. Other cities do the same" posted Wednesday on CNN.com:

Major Chinese cities, including financial hub Shanghai and Zhengzhou — home to the world’s largest iPhone factory — said Wednesday they were lifting Covid lockdowns.

Zhengzhou is the site of “iPhone City,” a sprawling campus owned by Taiwanese contract manufacturer Foxconn that normally houses about 200,000 workers churning out products for Apple (AAPL), including the iPhone 14 Pro and 14 Pro Max. The city locked down its urban districts last Friday or five days as Covid-19 cases surged.

In Shanghai, China’s largest and most affluent city, health authorities announced that lockdown measures imposed on 24 high-risk areas across 11 districts would be lifted starting Thursday.

Local authorities also lifted lockdowns in four districts of Guangzhou, Zhang Yi, a spokesperson of Guangzhou’s health commission said at a press briefing. The relaxation of restrictions imposed earlier this month in the manufacturing and transportation hub came after residents clashed with police Tuesday.

“This is some good news in a dark storm for Cupertino,” Daniel Ives, managing director of equity research at Wedbush Securities, told CNN Business, referring to the California city where Apple is based. “There is a lot of heavy lifting ahead for Apple to ramp back up the factories.”

My take: Anybody here know how rapidly Foxconn might get production back up to speed?

5 Comments

  1. Bart Yee said:
    “My take: Anybody here know how rapidly Foxconn might get production back up to speed?”

    It all depends on whether former trained workers are willing to take the incentives and come back. Frankly, considering relative lack of jobs elsewhere in the regions nearby, plus either Christmas or Lunar New Year gift giving, some (extra) income may prove incentivizing for many I hope. Of course, fears of further Covid outbreaks and resultant government actions still weigh heavily on those decisions.

    1
    November 30, 2022
  2. Neal Guttenberg said:
    With the news of the lockdown ending and interest rate hikes moderating, I am hoping that if Kuo was trying to support a short position on Apple for someone with his announcement yesterday, that they got their shorts handed to them.

    1
    November 30, 2022
  3. Steven Philips said:
    Maybe Apple (and Foxconn together) can make it big emphasis on having substantial health care providers and facilities available for any Covid problems. And be sure to address any problems quickly and completely and cover missed pay for any Illnesses. Maybe they already do. Make it louder.

    0
    November 30, 2022
  4. Brian Loftus said:
    Zero Covid policy ends but no replacement announced. They really need limited contact protocols for a month or two or things will get really bad.

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    November 30, 2022
  5. Brian Loftus said:
    Zero Covid policy ends but no replacement announced. They really need limited contact protocols for a month or two or things will get really bad. Covid now is about 1/10 as serious as alpha variant but ICU beds pre population is very small.

    0
    November 30, 2022

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