What They Say
Nikkei reported that Foxconn has said that it will maintain its revenue this year, despite lockdowns in China which are disrupting supply chains. Foxconn Chairman Young Liu said:
“It is indeed a great challenge. We have spent a lot of effort arranging workers’ food and accommodation and communicating with local governments. Currently, our important manufacturing complexes [in China] are operating normally through closed-loop management. Only a few, smaller factories are affected.”
On the other hand, Pegatron has had to suspend had to suspend operations at its iPhone assembly facilities in Shanghai and Kunshan for weeks due to strict local Covid measures. While Foxconn reported record revenues for Q1 2022, Pegatron saw net income fall by 64.3% in Q1. It said that all its business segments would decline in Q2.
What We Think
We’re seeing very varying fortunes from the lockdowns. Last week, AppleInsider reported that workers at a MacBook Pro plant in Shanghai had rioted. Earlier in the month, workers had rioted over the imposition of a lockdown but the reason last week was not clear. (BR)
