Foxconn’s production continues to be recalled as Coronavirus takes hold
Apple generates $27M in profit every couple of hours.
That’s important to understand because the fuel for that economic furnace is powered by people. You’d think it’s devices (and it is really), but at the end of the day, it’s people who assemble these ivory devices. Apple’s device sales generate the bulk of their cash. That’s why Apple has been focused on other revenue segments such as services and entertainment recently. Foxconn, is Apple’s primary fabricator and production darling, located in Shenzhen.
The majority of confirmed COVID-19 cases are in China, and as The People Republic of China contains its spread, only a fraction of workers are allowed to go back to work. Foxconn is deeply affected by this. Only about 10% reported back to work in Shenzhen last week. That’s painful for Apple, but for Foxconn, every day they aren’t producing, it eats into their margins as production estimates slip. They’ve begun to recall workers back to their factories in phases according to the Financial Times.
If only Foxconn would’ve built this mysterious factory in Mount Pleasant sooner. In fact, Foxconn has yet to manufacture a single thing in Wisconsin at all. They risk losing their Republican-apportioned tax credits and now they risk their razor-thin margins due to an outbreak that could have been contained much sooner.
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