China’s Zhengzhou district is known to be the world’s largest iPhone manufacturing center. However, amid tight restrictions due to China’s zero-COVID policy, iPhone production in the region could drop by as much as 30 percent.

Zhengzhou has been under a strict lockdown since mid-October, affecting around a million residents in the district. About 200,000 of them work at Foxconn’s Zhengzhou plant. Several workers fled the district due to the strict conditions after all non-essential businesses were closed and people were ordered to stay home.

The manufacturing slump comes ahead of the holiday season, which sees a spike in demand for consumer electronics.

Foxconn is ramping up production at its other factory in the city of Shenzen to make up the shortfall. The company told Reuters it is monitoring the situation and will coordinate backup production with other plants to reduce any potential impact.

Foxconn is the world’s largest maker of iPhones, contributing 70 percent of all shipments worldwide. Apple is also a key customer for Foxconn, accounting for more than 45 percent of the company’s revenue as well.

Source: Reuters