The incident at Foxconn's Zhengzhou factory highlighted the problem of Apple's over-reliance on China for its production lines.

(Reuters)

[Compilation of Wei Guojin/Taipei Report] CNN reported that the labor unrest at the world's largest iPhone factory in the past week has further tightened Apple's supply and highlighted how China's strict anti-epidemic policy is hurting the world Technology enterprises.

Analysts predict that Foxconn will therefore speed up the move of production lines from China to India. Next year, Foxconn India's iPhone production will increase by at least 150% compared with 2022.

According to the report, Daniel Ives, an analyst at investment company Wedbush Securities, pointed out that the production disruption of Foxconn’s Zhengzhou factory is a “heavy burden” for Apple, and “it is estimated that the related shutdown and turmoil will cost Apple about US$1 billion (NT$30.944 billion) per week.” yuan) iPhone sales".

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He said that the demand for the iPhone 14 during the Black Friday holiday is much higher than the supply, and may lead to serious shortages during the Christmas holiday. Foxconn's production disruption from October is a major blow to Apple this season.

He added that store checks on Black Friday showed that all models of iPhones were out of stock. Stores are now running between 25% and 30% less iPhone 14 Pro shortages than normal."

Ming-Chi Kuo, an analyst at TF International Securities, tweeted that the incident at the Zhengzhou factory may affect more than 10% of the world's iPhone production capacity.

He believes that Zhengzhou's epidemic prevention and control and the resulting struggle will prompt Foxconn to accelerate the expansion of the production capacity of the iPhone India plant. He predicts that the production capacity of Foxconn's India plant in 2023 will increase by at least 150% compared with this year, and the long-term goal is to increase the production capacity of the Indian plant. Shipments have increased significantly from less than 4% at present to between 40% and 45%.

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