Foxconn founder Terry Gou has signaled that the manufacturer’s return to production after coronavirus is going well. There were serious concerns that the shuttering of many factories would have a serious effect on global supplies of electronic parts, with Apple especially relying heavily on the company.
The result of all this was a serious drop in the firm’s revenue and expectations that making a full recovery would take time. Speaking to reporters in Taipei, Gou signaled that’s not quite the case.
He said the resumption of production has “exceeded expectations and imagination”. Supplies to its factories in China and Vietnam have returned to normal, he indicated. However, though the supply issues are beginning to clear up, demand is still a concern.
“In the United States, what we are worried about is the market. If production was resumed quickly but consumers stop spending…that would be key to the economic recovery,” Gou said.
Meanwhile, there are other worries outside of China. Japan and South Korea are likewise wrestling with the outbreak, but cases haven’t quite stabilized. All of this means it’s still not clear what the effect will be on Apple, as rumors indicate the iPhone 9 could be delayed.
For Foxconn, the shares have dropped almost 18% this year, and it announced expectations of a 15% revenue drop ($1.6 billion) in its first quarter. Going forward, its analysts expect a return to normal figures, but there are still many variables at play. We’re just going to have to wait and see what the knock-on effects are on Apple and its other customers.