MOSCOW (Pakistan Point News / Sputnik - 05th December, 2022) Revenue of Taiwanese manufacturer Foxconn, Apple's main supplier of electronic components, dropped sharply in November following the effects of the COVID-19 outbreak and labor unrest at the world's largest iPhone factory in China, CNBC reported on Monday.
In November, the company's revenue fell to 551.1 billion new Taiwan Dollars ($18 billion), down 29% month-on-month and over 11% year-on-year, the report read.
The fall was due to production gradually coming off its seasonal peak and some shipments being hit by the coronavirus epidemic in the city of Zhengzhou in China's central Henan province, home to the world's largest iPhone factory run by Foxconn, according to the report.
Many factory workers quit shortly after the pandemic began, while others complained about allegedly delayed bonus payments. This situation led to worker unrest, which was not addressed by the Foxconn's management, CNBC reported.
"At present, the overall epidemic situation has been brought under control with November being the most affected period by the epidemic," the company said.
The company has launched the process of reallocating production capacity as well as hiring new employees, according to the report.
Foxconn's troubles could negatively impact Apple's revenue by as much as $8 billion, CNBC reported, citing an advisory firm.
Foxconn is the world's largest electronics contract manufacturer established in 1974 in Taiwan. Its customers include major international corporations such as Amazon, Apple, xiaomi, and microsoft. In 2021, the company reported $139 billion in annual net income.
