CNN reported that workers at an Apple iPhone manufacturing plant in Zhengzhou, China fled after the facility was locked down due to a COVID-19 outbreak. On October 2, 2022, authorities imposed a seven-day lockdown of the area that houses the Foxconn plant, an order that could hit the iPhone assembler’s production and shipments. 350,000 people work at the plant that some call iPhone City.
Analysts said the chaos at Zhengzhou could jeopardize Apple and Foxconn’s output in the coming weeks. Ivan Lam, senior research analyst at Counterpoint, estimated that between 10% and 30% of iPhone 14 production could be affected in the near term if the situation did not stabilize. The Zhengzhou campus is the world’s biggest iPhone factory and typically accounts for as much as 85% of iPhone assembly capacity, according to Lam’s estimates.
The city, of more than 12 million, imposed sweeping lockdown measures earlier last month after identifying dozens of Covid-19 cases. Workers are panicking over the spread of the virus at the factory and lack of access to official information. Workers are packed side by side much like meat packing workers. It is not clear how many cases of Covid have been identified at the factory. Many scaled fences to escape the iPhone facility by foot.
Apple has started to boost production in other countries, including India, to reduce its dependence on China.