Apple (NASDAQ: AAPL) shares have rebounded from a 52-week low as the company and its manufacturing partner, Foxconn, have worked to improve the supply of iPhones. According to The Wall Street Journal, Foxconn’s manufacturing plant in Zhengzhou, China, which is known as “iPhone city,” is now operating at roughly 70% capacity, up from previous levels. The company has also started offering bonuses of around $700 to manufacturing workers who remain on the line through March 20 in an effort to increase production and employment.
However, Foxconn has continued to face labor shortages at its main production facility in Zhengzhou, leading to worker unrest and unpaid bonuses. In response, the company ended the “closed-loop” system that had been in place at the plant and apologized for the unpaid bonuses. Despite these efforts, Foxconn is still struggling to boost production levels and raise employment, according to The Journal.
As a result of the ongoing supply issues, research firm Trendforce has reduced its shipment forecast for the iPhone 14 to 78.1 million units for 2022, down from a previous estimate. However, J.P. Morgan analyst Samik Chatterjee has said that iPhone supply is “improving and inching slowly toward parity with demand.”
Apple’s shares have rebounded as the company works to address the supply issues, but the ongoing challenges at Foxconn’s manufacturing plant in Zhengzhou could continue to impact Apple’s production and sales in the coming months.