In late October, after footage emerged of workers fleeing, Foxconn said it was bringing the situation under control and coordinating with other plants to increase production.
KGI Securities analyst Christine Wang said if the problem persists through December, it would force Foxconn and Apple to produce about 10 million iPhones each, which equates to a 12% cut in iPhone shipments in the fourth quarter.
Foxconn managers said the company was stuck in a difficult position to speed up shipments during Apple’s all-important holiday season while adhering to the local government’s strict COVID guidelines.
“It was the busiest time of the year,” said a senior Foxconn official, adding that an October COVID outbreak at the Zhengzhou campus shut down the company and triggered a “glitch”.
“There was pressure on everyone, including local government,” the official said, with local officials rushing to help recruit replacement staff.
The official said what happened at the plant was “symbolic” of what companies are facing under China’s tough COVID policy, and that it would “move production lines out of China at a greater pace”.
Marina Zhang, associate professor at the University of Technology Sydney’s Australia-China Relations Institute, said Foxconn’s woes sent a message to companies trying to keep Chinese operations running and workers COVID-free in line with national policy.
“A company’s internal communications can become completely dominated, overwhelmed by social media,” Zhang said. “They lose power over social media – no one is going to listen to them.”
Fay, a worker, said she feared catching COVID and whether or not to stay for two more weeks to claim a bonus for completing a three-month contract. Eventually, he says, he climbed out through a hole in a green metal fence.
“In the end, I decided that my life was worth more.”