Foxconn Says Production Levels Have Returned to Normal in China and Vietnam
Foxconn says it has returned to normal levels of production in China and Vietnam, reads a new report from Reuters.
After a prolonged halt due to the COVID-19 coronavirus outbreak that has disrupted supply chains, Terry Gou, founder of Apple supplier Foxconn, said on Thursday that Foxconn factory restarts in China have “exceeded expectations.”
“[Gou] told reporters that the return to work effort at Foxconn’s factories in China had ‘exceeded our expectations and imagination,’ and that supplies to its plants there and in Vietnam had returned to normal,” reads the report.
The production at Foxconn factories was disrupted due to the coronavirus outbreak in China. After an extended period of shutdown, Foxconn resumed operations at its factories towards the end of February.
Recent reports early last week suggested that Foxconn was hoping to return to normal production this month, however, this latest report suggests it may already have achieved this goal.
The Apple assembler was hit hard by the closures, which halted production and disrupted its supply chain in mainland China. As a result, Foxconn reported a revenue drop of 18.1 percent in February, its largest plunge in seven years.
More businesses have recently reopened in China as authorities ease strict containment measures. However, for Foxconn, production issues have now been replaced by U.S. sales concerns.
“In the United States, what we are worried about is the market,” said Guo. “If production was resumed quickly but consumers stop spending… that would be key to the economic recovery.”