Apple’s main iPhone supplier Foxconn is almost back to full production after weeks of reduced output which had a severe impact on the tech giant’s supply chain. Foxconn’s main plant in the Chinese city of Zhengzhou, which is the largest iPhone manufacturing facility in the world, is operating at 90% of its peak capacity.
Foxconn’s COVID-19 woes start to ease
According to company representatives (via Bloomberg), Foxconn, Apple’s top supplier, is operating at 90% of capacity at its main production facility in the Chinese city of Zhengzhou. Vic Wang, a Foxconn executive, claims that 200,000 people are currently employed at the plant.
Foxconn’s relatively quick recovery works out pretty well for Apple in the lead-up to the busy Lunar New Year buying season. However, despite the fact that China has finally lifted COVID-19 lockdowns in Shanghai and Zhengzhou, iPhone production is still expected to face setbacks.
Lead times for the iPhone 14 Pro models started seeing considerable improvements in late November. According to week 12 of JP Morgan’s Apple Product Availability Tracker, lead times for the iPhone 14 Pro and Pro Max are down to 35 days, compared to 41 days in the previous week.
In addition to improving lead times, Apple also managed to increase its market share in China with the iPhone 14 lineup despite seeing lower shipments compared to 2021. Although the Chinese market experienced a general 18% year-over-year decline in demand for smartphones in the region, Apple managed to record a 1% year-over-year growth in its market share.
Foxconn’s Zhengzhou plant initially went under lockdown in October. The company was forced to continue operating under a closed-loop management system as a result. This led to lockdowns, riots, and protests.
Although Foxconn is on the mend, the shipping forecast for the iPhone 14 series in 2022 has been reduced to 78.1 million due to the extensive issues brought on by China’s recent string of lockdowns.
In related news, Foxconn is no longer going to be the sole assembler for next year’s iPhone 15 Pro models as Apple has tapped Luxshare for the production of the iPhone 15 Pro Max.
