Sales drop after the Zhengzhou plant closes.
After some shipments were impacted by the COVID outbreak in Zhengzhou, where the company runs the largest iPhone assembly facility in the world, Foxconn Technology Group Corp. reported November sales were down 11.4% year over year.
Q4 will be in line with the market consensus.
Although the COVID outbreak in Zhengzhou has resulted in government lockdowns, worker migration, and violent protests at a production site, the business anticipates its fourth-quarter sales to be in line with market expectations.
In addition to transferring production capacity to different factories, Foxconn said in a statement, “We have also started employing additional people and are steadily progressing towards restoring production capacity to normal levels.”
Foxconn continues to operate in a closed loop, limiting employee access to the workplace and their dorms.