iPhone City Lockdown Is Over: Foxconn Woes Reportedly Cost Apple $1 Billion per Week

The lockdown of the iPhone City in Zhengzhou, China, has been lifted, restoring the freedom of movement for residents and employees in the city.

After a significant production setback that cost Apple an estimated one billion dollars per week in missed iPhone sales, this measure will help ease strains at the Foxconn facility, as reported by 9to5Mac.

The termination of COVID-19 limitations in the city would enable Foxconn to quit the closed-loop manufacturing process, which has been a significant element in the plant’s previous incidents.

Zero-Covid Policy

As part of China’s Zero-Covid policy, which aims to eliminate the transmission of the virus, whole cities have been put under lockdown after a single positive test. The first confirmed COVID-19 death in China since May was previously reported by Tech Times.

Zhengzhou, often referred to as iPhone City since it is home to the world’s biggest iPhone manufacturing factory, was put under lockdown.

Large factories can stay open by moving to closed-loop manufacturing, in which employees live on campus and work around the clock for up to a month at a time.

Apparently, this was stressful for employees, who are cut off from their loved ones and have few options for relaxation.


When a case of COVID-19 broke out on the Foxconn campus, a bad situation quickly deteriorated into a catastrophic one.

Workers complained about a shortage of supplies, including food and medicine. Many opted to escape from the facility and return to their home communities.

When retention incentives paid by Foxconn were not enough to keep employees, the company multiplied them by 10. The factory was put under a stricter lockdown as the infection spread.

Protests erupted into violence as newly hired staff claimed they were not given the incentives they were promised. Foxconn eventually acknowledged a technical issue regarding bonuses and vowed to rectify the situation.

Additionally, the corporation provided an exit bonus for new recruits who no longer wanted to remain. Sources suggest that more than 20,000 individuals have taken this and departed the facility.

See Also: Apple Reveals Drop in Shares Due to Foxconn Chinese Factory Incident

Lifted Lockdown

According to CNN’s report, the lockdown in Zhengzhou has been lifted.

Workers at Foxconn’s iPhone manufacturing will be permitted to leave the facility now that they are no longer required to participate in closed-loop production.

This should assist a lot in reducing tensions and attracting new employees to replace the ones who have departed.

Losses in iPhone manufacture have been estimated anywhere from 6 million to over 20 million devices.

The iPhone 14 Pro has been most impacted since the supply and demand imbalance has become so large. Orders made in the middle of November cannot be guaranteed to arrive in time for Christmas.

Monday, Nov. 28, was Apple’s worst one-day decline in more than two weeks, falling 2.6% to $144.22 in New York. Apple fell 19% this year.

Apple’s current series is produced in the Zhengzhou Foxconn factory, causing the dip in shares.

Related Story: Apple Fears iPhone Supply Bottleneck Following Recent Foxconn Protests

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