Last year Foxconn had a hustle and bustle at its Zhengzhou facility in China, which also happens to be the largest iPhone assembly plant in the world. Apple’s assembly partner delivers about 70 percent of global iPhone shipments through this factory. Due to a series of major setbacks, which included workers walking out of the facility and starting riots, Foxconn has installed a new iPhone assembly executive, who will likely ensure business safety throughout 2023.
The rise of COVID-19 and a lack of preemptive understanding of the situation has resulted in Foxconn’s facility temporarily halting production
The new CEO joining the workforce is Michael Chiang, who replaced Wang Charing Yang, who had been with Foxconn for many years. According to Bloomberg, Chiang was hired by company president Young Liu in an effort to prevent other Chinese competitors from approaching him first. Chiang’s youth may also indicate that Foxconn intends to let the creative mind work and introduce more efficient production measures in the Zhengzhou factory.
Although the Foxconn factory has resumed production to previous levels, Apple could lose up to 20 million shipments of iPhone 14 Pro and iPhone 14 Pro Max in the fourth quarter of 2022 due to previous shutdowns. In a rare move, the company issued a press release in 2022, saying customers should expect iPhone 14 Pro and iPhone 14 Pro Max shipments to drop during the holiday quarter, but it was working around the clock to make sure the supply chain was stable.
To make things work, when COVID-19 cases began to rise in China, Foxconn workers were rumored to be subjected to harsher working conditions, leading to their eventual resignation and the start of protests. According to one report, there was a shortage of food and water during the lockdown, which naturally created a sense of unrest among the workers. Foxconn offering simple one-time bonuses didn’t help the situation at the time either.
Chiang’s work is likely to be shut down, as it was previously reported that Apple had stripped Foxconn of its exclusive status when assembling the upcoming iPhone 15 Pro and iPhone 15 Ultra. The new executive will have to prove to his most lucrative clients that an accident like the previous one will never happen again.
News source: Bloomberg