wionnewsweb@gmail.com (Wion Web Team) -
The lockdown of Foxconn's Zhengzhou facility, which makes the majority of the world's iPhones, has brought to light some of the dangers associated with relying solely on China's manufacturing industry, analysts told AFP.
The primary subcontractor for Apple, Foxconn, has experienced an increase in Covid-19 cases at its Zhengzhou location, prompting the company to lock down the enormous complex in an effort to contain the virus.
Following reports of bad working conditions at the factory, which employs hundreds of thousands of people, images of terrified employees running away from the scene on foot appeared.
Over a million people are employed by Foxconn, the largest private employer in China, at its thirty factories and research facilities spread out over the nation.
The Taiwanese giant's gem, though, is Zhengzhou, which produces iPhones in unprecedented amounts.
"In a normal situation, almost all the iPhone production is happening in Zhengzhou," said Ivan Lam, an analyst with specialist firm Counterpoint.
China, one of Apple's most significant markets, is where more than 90% of its goods are made.
According to Dezan Shira & Associates, a consultancy organisation, experts claim that the company's substantial reliance on China "brings potential risks, especially when the US-China trade war shows no signs of de-escalating."
Up to 300,000 people work at the Zhengzhou facility, which opened in 2010, and they all year round reside there, resulting in the enormous "iPhone city" tech hub.
Analyst Lam thinks that "10 to 30 per cent" of the site's output was lost as a result of the partial shutdown, but he also noted that some manufacturing had temporarily shifted to other Foxconn facilities in China.
As the final major economy to commit to a zero-Covid strategy, China continues to implement sudden lockdowns, extensive testing, and protracted quarantines in an effort to contain spreading epidemics.
(with inputs from agencies)
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