Main contractor Apple will restore production to the end of March

the Taiwanese company Foxconn, which is the main manufacturing partner of Apple, will resume its planned production in China by the end of this month, according to Reuters.

Foxconn has been returning employees to work after a compulsory quarantine to be after the holidays at the request of the government. To date, more than half of the seasonal employees in Chinese factories Foxconn already returned to work following the outbreak of coronavirus.

At present, to work back more than half of the seasonal employees. Chairman of the Board of Directors of Foxconn, Liu Yung-wah said that the company had big problems in the supply chain and Foxconn that helps providers to resume work. However, Foxconn said that can’t predict the actual impact of the outbreak of the financial results for the year.

the Top Manager of Foxconn has merely limited itself to stating that while the resumption of work and production is a priority. Earlier it was reported that Foxconn has begun large to reward their employees who come back or first go to work in the factories in Shenzhen and Chanjo. Bonuses up to $1 thousand and several times higher than monthly salaries.

Insiders in the supply chain say that Foxconn is trying to start production of smartphones Apple iPhone new generation, but the previously scheduled time are under threat due to travel restrictions.

last week the capitalization of the largest technology companies — Apple, Facebook, Amazon, Microsoft and Google — the total fell by more than $238 billion Decrease occurred during a large fall in the stock market, which was observed on the background of the spread of coronavirus in other countries, such as South Korea, Iran and Italy.

the impact of the epidemic especially painful for Apple, as China concentrated its main power manufacturing partners. Apple has already warned that the outbreak Covid-19 will have a negative impact on the company’s revenue. Analysts at Needham & Company believe that the return to normal situation with the demand and supply can only by June 2020, two months later than previously expected. According to the Nikkei, of the 200 largest suppliers of the company, about 75% have at least one production site in China, and nearly a quarter in the middle Kingdom are three or more businesses.

In General, electronics manufacturers expect product delivery can be delayed an average of five weeks due to a virus COVID-19, according to a study by the IPC. Factories in China are pivotal to supply the electronics industry, and manufacturers increasingly fear that disruptions associated with the coronavirus can delay the production for a few weeks.

on average, manufacturers surveyed by IPC, expect a three week delay from its suppliers, but this period may last for a longer period. The average projected period of delay was five weeks and some companies expect that delay will last longer than nine weeks. For assembling electronics often require hundreds of different parts, components or materials, and therefore one missing detail will lead to slow down the issuing company. Even if the production takes place in regions not affected by the coronavirus, these goods are often used items in China.

While companies are looking at inventory and still a working supply chain. However, about 65% of the respondents reported that their suppliers have already warned of impending delays. Some contract manufacturers have stated that they are trying to find alternative suppliers outside of China and are faced with personnel problems.