Apple Supplier Foxconn Halts Operations At 2 Chinese Plants On Rising COVID-19 Cases

Apple Inc's (NASDAQ: AAPL) premier supplier Foxconn Technology halted operations at two of its factories in Kunshan, located in China's Jiangsu province, after a recent surge in COVID-19 cases was reported on-site, according to SCMP.

What Happened: The report about the halt comes as the world's second-largest economy continues to battle spiking COVID-19 cases despite stringent restrictions in Beijing and Shanghai. 

The two Foxconn plants, located in Kunshan's Dianfa and Fuhong, are among its four manufacturing units operating in the city.

Operations were suspended last week, with all employees confined to dormitories inside under a strict lockdown, as per SCMP. 

Foxconn, as per media reports, said in a statement that it sees no major impact from the suspensions.

"As production has previously been deployed to backup factories, the factory's main products are located in an overseas shipping warehouse, and inventory levels are still sufficient, the impact on the company's business is limited," the company said, according to Reuters.

China's "zero-COVID" policy to curb the spread of the deadly virus had impacted the assembly operations of Pegatron, Apple's second-largest contract manufacturer.  

Price Action: According to data from Benzinga Pro, shares of Apple closed -2.78% lower on Nasdaq on Friday. 

Photo courtesy: Puddingworld on Wikimedia