Apple partner Foxconn, which builds iPhones, said in a presentation to investors Tuesday that it expects to be back to full seasonal capacity by the end of the month after coronavirus fears stalled some production in China.
Foxconn told investors it has already returned to 50% of “seasonal required capacity.” The company announced less than two weeks ago that it had resumed production at its main China plants after being forced to close major sites due to health concerns.
Foxconn warned, “There are still plenty of uncertainties which we can not [sic] quantify the potential impact on the full year. However, AI, semiconductor and 5G are still critical catalysts for the long-term. Therefore, we believe some demands will be pushed out to later of this year.”
Foxconn’s resumed production is critical to Apple’s iPhone plans.
The company has been expected to unveil a new low-cost iPhone this month produced at a Foxconn plant impacted by closures in Zhengzhou, China, according to top Apple analyst Ming-Chi Kuo. Apple provided wider than typical guidance for the next quarter to account for the impact of coronavirus-related measures in China. Apple had also temporarily closed stores and offices in the region “out of an abundance of caution.”
Shares of Apple were down more than 3% Tuesday afternoon, but Apple popped 9.3% on Monday after stocks rallied into the close.