Please ensure Javascript is enabled for purposes of website accessibility

Apple Supplier Foxconn Resumes Production After Coronavirus Outbreak

By Rich Duprey - Updated Mar 3, 2020 at 2:49PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It expects to be back at full production by the end of the month.

Foxconn, one of the primary producers of iPhones for Apple (AAPL 0.00%), has said it anticipates returning to full production by the end of March, after having been shut down due to the coronavirus outbreak.

The spread of COVID-19 is threatening to delay the introduction of Apple's new low-cost iPhone, which some are calling either the "SE 2" or "iPhone 9."

The device was supposed to begin production last month, but workers at Foxconn and Pegatron, another Apple supplier, had their Lunar New Year vacations extended due to the disease's spread. Apple said it would be unable to meet the quarterly revenue guidance of $63 billion to $67 billion it had previously provided as a result.

The inside of a factory

Image source: Getty Images.

Minimal impact on Foxconn

Foxconn also issued a revenue warning, announcing it expected a 15% decline in consumer electronics and enterprise product revenue in the quarter. However, it did forecast revenue would recover after it resumed full production at the end of the month.

Even so, the impact of the outbreak means it will not see any revenue growth in the first half of 2020, and the full year will suffer a "mild downward revision" from its original guidance.

The iPhone supplier had begun bringing back workers to its factories at the end of February and now is reportedly staffed at 50% of its normal seasonal level. Foxconn Chairman Liu Young-Way told investors, "Prevention of outbreak, resumption of work, and production are our top priority."

Foxconn is the world's biggest contract manufacturer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Hon Hai Precision Industry Co., Ltd. Stock Quote
Hon Hai Precision Industry Co., Ltd.
HNHAF
$4.18 (0.00%) $0.00
Apple Inc. Stock Quote
Apple Inc.
AAPL
$141.66 (0.00%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.