- The stock price of Apple Inc (NASDAQ: AAPL) has decreased by over 1% during intraday trading. This is why it happened.
The stock price of Apple Inc (NASDAQ: AAPL) has decreased by over 1% during intraday trading. Along with a broader market selloff due to concerns over inflation, it appears that investors are also responding negatively to Apple’s attempt to diversify its manufacturing to India is being impacted by the coronavirus crisis.
And according to a Reuters report, the production of the Apple iPhone 12 at a Foxconn factory in India dropped by over 50% due to workers being infected with COVID-19. The Foxconn facility in Tamil Nadu is known for producing iPhones for the smartphone market in India.
Over 100 Foxconn employees in the state tested positive for COVID-19 and the company was enforced a no-entry ban at its factory in Chennai until late May, according to Reuters’ sources.
“Employees are only allowed to leave but not to enter the facility since yesterday,” said the Reuters’ source. “Only a small part of output is being kept.”
Over 50% of the capacity at the plant was cut said both of the sources.
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