Riots at the Apple Inc. manufacturing center. in Zhengzhou, China, will likely lead to a reduction in production of almost 6 million iPhone Pro units this year, Bloomberg writes , citing a source in the production.
According to the source, the situation at the plant remains unstable, and the estimate of product losses may change. Much will depend on how quickly Foxconn Technology Group, the Taiwanese company that runs the facility, can get people back on assembly lines after protests over covid restrictions and dissatisfaction with wages. If the protests continue in the coming weeks, production could be delayed even longer.
According to the agency, Foxconn has begun offering $1,800 to workers who will stay at the plant until January.
"The unrest in Zhengzhou is a stark reminder of the risks Apple faces from its vast supply chain in China," Bloomberg notes.
Foxconn's Zhengzhou plant, which typically has over 200,000 employees, assembles most of the iPhone Pro models. More than 20,000 new employees reportedly quit after the protests.