Apple Inc.AAPLsupplierHon Hai Precision Industry Co. Ltd.’sHNHPFproduction of the iPhone 12 at a factory in India has slumped by more than half amid the second wave of coronavirus infections that has engulfed the South Asian nation, ReutersreportedMonday, citing two sources.
What Happened: The factory of Hon Hai, better known as Foxconn, is located in Tamil Nadu, an Indian state among the worst hit by the surge in COVID-19 cases.
The state is also a large mobile handset manufacturing hub and plays host toNokia CorporationNOK,SamsungElectronics Co. Ltd.OTCSSNLFandLenovo Group LimitedLNVGYsubsidiary Motorola, among others.
Taiwan-based Foxconn has enforced a no-entry ban at the factory until late May after more than 100 workers at the factory tested positive for COVID-19, according to the Reuters report. The factory provides dormitory accommodation for employees.
Taiwan News had previouslyreportedthat after 10 Chinese engineers were found to be infected with COVID-19, the Foxconn factory was disinfected and continued to operate without completely shutting down.
Why It Matters:Apple’s supply chainhas been hitamid the second wave of coronavirus in India. The tech giant is in the process of diversifying production to India and Vietnam in a bid to move away from Chinese manufacturing.
More than 400,000 daily new coronavirus cases are being reported in India over the past few days. Several states in the country have imposed complete lockdowns due to the steady rise in coronavirus cases.
Price Action:Apple shares closed almost 2.6% lower in Monday’s trading at $126.85. On the same day, Hon Hai shares closed almost 3.5% lower at $8.08.
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