Foxconn production beats the expectation but the company is concerned with low demand


Foxconn

Foxconn founder Terry Gou made a statement today explaining that the reopening of Foxconn factories in China is going well and that production has exceeded expectations. However, he wasn’t pretty clear about those expectations.

Gou revealed that supplies to Foxconn plants if Taiwan and China are back to normal form. However, the lowered consumer demand due to the ongoing Coronavirus outbreak will impact the company and its partners’ bottom lines. Foxconn revenue dropped by more than $1.6 billion in February because of factory closures and the need to send workers home.

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Foxconn is Apple’s main manufacturer. One of the consequences of the COVID-19 outbreak is the delay to the iPhone 9 manufacturing. Besides the slow smartphone market, the company had to delay indefinitely the launch of the new cheaper iPhone. Worth noting, that for the first time in weeks, less than 10 people are infected per day with COVID-19 in China. The country announced that it has successfully surpassed the worst phase of the outbreak.

It’s good to see that life in China is slowly getting back to normal. Companies and factories will start to resume their work. However, we don’t know how things will play out now that COVID-19 is present in the entire world.

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