Thursday saw an almost 3% increase in Apple stock ( NASDAQ:AAPL ) as the tech giant, and its manufacturing partners sought to increase the supply of the crucial iPhone. As China has loosened additional COVID-19 regulations, the production facility for Foxconn, also known as Hon Hai Precision ( OTCPK:HNHPF ), in Zhengzhou, China, is now estimated to be running at about 70% of its capacity levels.
Analysts and insiders close to Foxconn’s supply chain reportedly told the Wall Street Journal that the business had accelerated its production lines. In an effort to expand output, Foxconn began providing bonuses in November to encourage hiring at its Zhengzhou plant, also referred to as “iPhone city.” The Journal also stated that Foxconn has begun to compensate factory employees who remain on the line through March 20 with a bonus equivalent of about $700.
Due to COVID-19 restrictions imposed on it by Chinese government officials and unpaid bonuses, Foxconn had to deal with worker discontent last month and early this month. Foxconn apologized for the unpaid bonuses and terminated the “closed-loop” method that was in place at its Zhengzhou facility, but The Journal noted that the company is still having trouble increasing production and employment.
Apple Stock Overview
Samik Chatterjee, an analyst with J.P. Morgan, stated earlier this week that the supply of iPhones was “improving and inching slowly toward parity with demand.”
Following a 52-week low on Wednesday, Apple ( NASDAQ:AAPL ) was able to recover thanks to share price growth on Thursday.
Due to ongoing labor constraints at Foxconn’s primary manufacturing facility in Zhengzhou, Ch...
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