The devastating death toll of the novel coronavirus has surpassed that of SARS. At the time of this publication, there are 40,171 infected cases and 97 additional deaths, according to China's National Health Commission. The alarming rise of cases in the region has compromised the operations of a lot of businesses with interests in China, one of them is Apple.
Suspension of Operation
A few weeks earlier, the Shanghai government ordered the temporary closure of businesses to strengthen the prevention and control of the novel coronavirus in the region. Businesses are expected to resume their operations on Feb. 09, 2020. Foxconn, one of the significant iPhone suppliers, was planning to continue its operation on Monday.
Nikkei Asian Review, however, learned from several sources that Foxconn's plan of resuming its operation was called off by Chinese authorities. The company, trading as Hon Hai Precision Industry, was advised to close by the public health experts in Shenzhen due to several reasons, according to Nikkei. It includes its factories being high risks of coronavirus infection, which authorities deemed not suitable to resume operation.
Aside from its Shenzhen operation, the company's Zhengzhou facility also canceled its plans of resuming operation on Monday, according to the report. Among the health risks identified by the public health authorities in Shenzhen includes poor airflow in employee dormitories and restaurants. The report also pointed out the facility's use of central air conditioning, which could pose a greater risk because of the workers' density.
Foxconn's Move
In another report released by Bloomberg it reveals that Foxconn is currently working with authorities to create safety measures to protect its employees. In terms of its operation, the report claims that the company's resumption of production depends on the decision of the government. At this point, nothing is definite yet about when exactly is Foxconn would resume its operation in the region.
Foxconn, aside from being the biggest assembler of iPhone in the whole world, is also the major supplier of other tech giants. It includes Google, Huawei, and Amazon, among others. A Shenzhen-based Apple supplier who works closely with Foxconn said that the government is extremely strict these days.
Apple closed 42 stores in China a few days ago. It includes corporate offices, service centers, and retail stores. The Cupertino company plans to resume its operations on Feb. 15. Compal Electronics, Apple's iPad supplier, also postponed its plan to resume its operation from Monday to Feb. 17.
Analysts were earlier optimistic that the virus outbreak in China would not disrupt Apple's supply chain. But, it looks like things are going to affect Apple one way or another if the novel coronavirus would not be resolved as soon as possible.
