A new report says production of the iPhone 12 at a factory in Tamil Nadu has fallen by more than 50% due to COVID-19.
Production of the Apple iPhone 12 (AAPL.O) at a Foxconn (2317.TW) factory in India has slumped by more than 50% because workers infected with COVID-19 have had to leave their posts, two sources told Reuters.
The Foxconn facility in the southern state of Tamil Nadu produces iPhones specifically for India, the world’s No.2 smartphone market.
A full lockdown began on Monday and more than 100 Foxconn employees in the state have reportedly tested positive for the disease. Employees are allowed to leave the facility but are not able to enter, with only a small output being kept according to one source. Two sources told Reuters production had fallen by more than 50%.
In a statement Foxconn said:
“Foxconn places the health and safety of our employees as our highest priority and that is why we have been working closely with local government and public health authorities in India to address the challenges that we and all companies are facing in dealing with the COVID-19 crisis”
Foxconn shares have fallen sharply following the report. Multiple Apple suppliers including Foxconn have onshored manufacturing in India over the last year, driven in part by very favorable government subsidies given as incentives to invest in the country. Foxconn’s Tamil Nadu facility produces iPhones specifically for India, meaning the impact on device supply should be limited to within India’s borders.