Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
A man walks past the logo of Foxconn Technology Group at a factory in Wuhan, Hubei province. Photo: Reuters

Apple supplier Foxconn says plans in place to meet production obligations after virus outbreak

  • Apple offered a wider-than-normal earnings outlook for the March quarter because of the uncertainty created by the coronavirus

Apple supplier Foxconn Technology Group said it could continue to meet all manufacturing obligations in the wake of a coronavirus outbreak in China even as the iPhone maker flagged uncertainty created by the disease.

“We do not comment on our specific production practices, but we can confirm that we have measures in place to ensure that we can continue to meet all global manufacturing obligations,” Foxconn, formally known as Hon Hai Precision Industry, said in a statement on Tuesday.

A new coronavirus has killed 132 in China and infected more than 6,000 people, with several other countries reporting cases as well.

China extended the Lunar New Year holiday by three days to February 2 to contain spread of the virus.

Foxconn, which has a big facility in Wuhan, the epicentre of the virus outbreak, said its plants in China were following holiday schedules and would continue to do so until all businesses have resumed standard operating hours.

CEO Tim Cook says Apple working to mitigate impact of China coronavirus

The outbreak has led countries including the United States to advise against all but necessary travel to China, forced food chains such as Starbucks to close stores and airlines to cancel flights.

Apple, which reported holiday quarter sales and profit above Wall Street expectations on Tuesday, offered a wider-than-normal earnings outlook for the March quarter because of the uncertainty created by the coronavirus.

“The situation is emerging, and we’re still gathering lots of data points and monitoring it very closely,” Apple chief executive Tim Cook told Reuters.

Apple has suppliers in the Wuhan area, but has alternatives, Cook said.

After the Lunar New Year holiday, factories outside the Wuhan area will not reopen until February 10, Cook said, but Apple built the delayed restart into its wider revenue forecast.

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chip maker that has factories in Shanghai and Nanjing, told Reuters its operations had not been affected. TSMC has asked staff who had visited Hubei within the last 14 days to stay at home and monitor their health.

Purchase the China AI Report 2020 brought to you by SCMP Research and enjoy a 20% discount (original price US$400). This 60-page all new intelligence report gives you first-hand insights and analysis into the latest industry developments and intelligence about China AI. Get exclusive access to our webinars for continuous learning, and interact with China AI executives in live Q&A. Offer valid until 31 March 2020.