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China floods: Foxconn under pressure to meet iPhone targets as it extends workers’ leave into third day
- Record amounts of rainfall have forced Foxconn to put workers on leave at some of its factories
- Foxconn’s biggest plant in the city, located near the airport, remains unaffected
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Central China’s worst flood in recent memory could put Apple’s primary supplier Foxconn under increasing pressure to meet production targets as the company extends workers’ leave into the third day.
Record rainfall in Henan, which lead to the deaths of at least 33 people and displaced more than 3 million, has forced Foxconn to put workers on leave at one of its factories in Zhengzhou, the capital of the province, according to employees at the plant.
Analysts said disruptions could increase pressure on Foxconn to meet Apple’s ambitious iPhone targets.
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“The floods will have an impact on Foxconn’s production, but it might be limited if the situation in Zhengzhou gets better,” said Ethan Qi, senior analyst at Counterpoint Research
Before the floods, the Taipei-based company was expected to start mass production of the next generation iPhone later this month to meet Apple’s target of 90 million units available at launch, 15 million more than for models in previous years.
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In addition to Foxconn, Apple has other suppliers with assembly plants in China including Luxshare Precision Industry and Pegatron.
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