Foxconn, Apple's major iPhone plant, was supposedly scheduled to resume its operations on Feb. 09, 2020. However, the Chinese government prevented it from reopening a few days ago because of some security and safety issues with the facilities that could endanger employees and exposed them to novel coronavirus. But, a new report claims the Chinese government already issued approval to Foxconn to resume its operation at its Shenzhen plant.
According to Reuters, a source with direct knowledge of the situation told them that the iPhone plant in Shenzhen got the green light from the Chinese government to resume its operation. Following the delay of the plant's reopening due to coronavirus outbreak, around 20,000 people or an estimated 10 percent of the plant's workforce reported for duty as of Monday.
Last week, the Taiwanese company told its workers at its main office in Shenzhen not to return to work. The company would like to make sure that everyone's safety and health is safeguarded. Also, it wanted to comply with the Chinese government's mandate to temporarily shut down as a preventive measure against the novel coronavirus outbreak.
A few days earlier, Nikkei Asian Review and Reuters reported that Foxconn's Shenzhen plant was prevented from resuming its operation despite the company's request. The Chinese government reportedly found some health and safety hazards in the facility that could put the lives of its employees at risk. The report also revealed that the facility would have to undergo another check from the government to make sure that it has proper virus control measures in place.
The low employee turnout at the iPhone plant in Shenzhen could be attributed to transport restrictions currently being observed in the country. Based on the latest reports, Foxconn's getting banned from resuming operation earlier is not an isolated case. It appears that some executives were also working with the Chinese government to get a green light to resume operations.
Apple last week closed 42 stores, including corporate offices, retail stores, and service centers in China because of the novel coronavirus outbreak. On Monday, following reports that Foxconn was not given the approval to commence operations on its facilities, Apple shares plummeted.
During the Monday morning trading, Apple stocks were off 0.2 percent. The uncertainty in the iPhone plants' operations contributed to the recent market performance of the company's stock. Improvement might be seen today following reports that both plants have already gotten approval to resume operations.
Apple is anticipated to release its low-cost entry-level iPhone SE 2 in the first quarter of this year.
