The recent Coronavirus crisis has doomed every industry and country with an economic standstill. There is a lack of demand for the new gadgets already due to which factories are cutting staff. The latest in the line to cut staff is the Chinese manufacturers and Factories, which provide accessories for iPhone to Apple.
iPhone Demand Plummet due to coronavirus pandemic forcing Chinese Suppliers to cut staff
The Production of Apple iPhone has slowed down due to which the team is reduced. There is decreased demand for Smartphones and other high-end gadgets in the market. China was earlier one of the largest suppliers to the makers of the iPhone.
Foxconn also cuts staff
Currently, Foxconn, the Chinese contract manufacturer has also put a halt on its hiring at the Zhengzhou factory complex where the iPhones are assembled.
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As per the workers, the company has slowed down hiring and has reduced staff.
iPhone City Firing Workers and Slowed hiring
Reportedly what is referred to as the iPhone City and employs a large number of workers for iPhone manufacturing and assembly has also started to cut staff, which was hired in February in large numbers. Factory workers are also not receiving their overtime hours.
Lack of demand already projected
In March this year, Apple closed its showrooms outside Greater China, and only a few retail outlets have opened recently in South Korea. As per the reports by Trend force, a Technology Industry research Company has forecasted that the Apple iPhone production will go down by around 20 million due to the global pandemic crisis.
Global Impact of Coronavirus
Mia Huang of Trend force said that “The global economy has taken a nosedive, which may induce iPhone users to postpone their phone replacement cycles.
” Various trade experts have forecasted a massive decrease in the demands of the iPhone in the future due to Pandemic”.
Apple manufacturing slowed down
Pegatron, which is a large Apple supplier, also hinted on cutting the employees as the Shanghai Factory sees loss in demand for iPhone.
Recruiters across China have also expressed that the temporary workers are in vain due to a lack of demand. They have nowhere to go.