India's Covid spike severely dents Apple iPhone production
Apple CEO Tim Cook with the iPhone 12. Production in the important Indian market has slumped due to the spike in Covid cases.
Production of the Apple iPhone 12 at a Foxconn factory in India has slumped by more than 50% because workers infected with Covid-19 have had to leave their posts.
The Foxconn facility in the southern state of Tamil Nadu produces iPhones specifically for India, the world's second-largest smartphone market.
Tamil Nadu is one of the worst-hit states in the second coronavirus wave engulfing India. Officials imposed a full lockdown in the state from Monday, closing public transport and shuttering shops, to try to slow surging infections.
More than 100 Foxconn employees in the state have tested positive for Covid and the company has enforced a no-entry ban at its factory in the capital of Chennai until late May, according to sources.
Foxconn — the world's largest contract electronics maker and a major supplier to Apple — declined to comment on factory output or specific staffing levels.
Meanwhile, Apple is facing a London lawsuit over claims it overcharged nearly 20m UK customers for purchases on its App Store. It marks yet another legal headache for the tech giant fighting lawsuits across the world.
Apple’s 30% fee is “excessive” and “unlawful” the claimants said. The claim, filed at London’s Competition Appeal Tribunal, calls for Apple to compensate UK iPhone and iPad users for years of alleged overcharging.
They estimate that Apple could face paying out in excess of £1.5bn (€1.7bn).
“Apple is abusing its dominance in the app store market, which in turn impacts UK consumers,” said Rachael Kent, the lead claimant in the case and a professor at King’s College London.
The suit, described by Apple as “meritless,” was filed a week into a US trial over Epic Games’ claims that Apple is running its marketplace like a monopoly, cheating developers and consumers.
The separate UK claim is focused on the alleged harm caused to customers rather than developers.
Earlier this year, Apple lowered its App Store fee to 15% from 30% for developers who produce as much as $1m in annual revenue from their apps and those who are new to the store.
The legal challenges come as Apple faces a backlash — with billions of dollars in revenue on the line — from global regulators and some developers who say its fees and other policies are unjust and self-serving.
Last month, the European Commission sent a statement of objections to the firm, laying out how it thinks Apple abused its power as the “gatekeeper” for music-streaming apps on its store.
• Reuters and Bloomberg




