Nasdaq 100: Apple shares down as Foxxcon disruption continues
The disruption at Apple’s iPhone facility in China continues to be a headache for the business, with production expected to be down for the important Christmas period.
(Video Transcript)
Apple shares down
There are plenty of problems for Apple and its iPhone production at its Chinese factory.
In particular Foxconn, the Zhengzhou plant's November shipments are expected to fall further, according to a report out from Reuters today. It's all about worker unhappiness. There have been riots at the plants. The plant doesn't employ enough people to continue to produce iPhones at the rate that Apple has requested.
Over 20,000 workers, according to reports, have left the plant. And this isn't a flagship iPhone plant for Apple. And China is very much underperforming the plans that Apple had for this particular site. And the site is the only factory where iPhone makes these premium iPhone models, including the iPhone 14 Pro, and it's unlikely to resume full production, according to Reuters, by the end of this month.
Share price chart
In fact, if you look at the Apple share price, there hasn't really been much move today. The stock is currently down all sessions on the IG platform. This is before US markets get under way today. It was no trade yesterday because of the Thanksgiving Day holiday. But we can see in terms of the movement in the session, in today's trade, we are down by a margin of just about about two thirds of 1%.
So not much move, but the news is not particularly good. And unless Apple can get some sort of resolution to this really quickly, there will be further problems.
Part of this is the fact that workers have been given what they perceive to be very difficult conditions in which to work because of the Zero-Covid policy. But at the moment at least, Apple is having continuing problems with the iPhone production in China.
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