Foxconn unrest puts iPhone shipments at risk, Apple shares weigh on

In a statement on November 7, Apple said it expected shipments of the iPhone 14 Pro and iPhone 14 Pro Max to be lower than previously expected.

Some new recruits hired by Foxconn in recent weeks claimed they were misled about compensation benefits at the factory, and others complained of sharing dormitories with colleagues who had tested positive for COVID-19. had tested positive.

Foxconn on Thursday apologized for a pay “technical error” during the hiring and later offered 10,000 yuan ($1,400) to protesting new recruits who agreed to resign and leave.

The source said that more than 20,000 workers, mostly new employees who are not yet working on the production lines, walked away with the money. Videos posted on Chinese social media on Friday showed crowds and long lines of workers laden with luggage queuing for buses.

“It’s time to go home,” posted one person.

The plant, before its troubles began, employed over 200,000 workers. It has dormitories, restaurants, basketball courts and a football pitch with facilities of approximately 1.4 million square meters (15 million sq ft).

Another Foxconn source familiar with the matter said some freshmen had left the campus, but did not say how many. This person said that because the people leaving had not yet been trained or started working, their departure would not further damage current production.

“The incident has had a major impact on our public image, but little on our (current) capability. Our current capability has not been affected,” the source said.

The person said, “There’s only so much corporate can do on pandemic prevention … It’s been a problem for a while. It’s a problem that everyone faces.” Apple supplier, Quanta, in May.

Foxconn shares closed down 0.5%, underperforming the broader market, with the .TWII ending flat.

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