Foxconn said provisions have been made to meet production obligation in China. Apple is closely monitoring the situation.
Foxconn, which assembles a significant portion of Apple’s product line including iPhones, iPads, and Macs, said in a statement on Tuesday that its facilities are prepared to fulfill all global orders, Reuters reports.
“We do not comment on our specific production practices, but we can confirm that we have measures in place to ensure that we can continue to meet all global manufacturing obligations,” Foxconn said.
There are nearly 6,000 confirmed cases of the new form of coronavirus that originated in Wuhan, China. So far, the virus has killed 132 people in the region.
As part of an effort to halt the spread of the virus, China has extended the Lunar New Year holiday to reduce mass gatherings, such as folks congregating at airports, train stations and other areas for travel back to work.
Foxconn, which has a plant in Wuhan, says its facilities in China are following holiday schedules until all Chinese businesses are authorized to return to standard operating hours.
On Tuesday’s Apple earnings conference call with the press, company CEO Tim Cook discussed the potential impact the coronavirus might have on the first fiscal quarter of 2020. Cook said so far the fallout has been minimal, with on Apple retail store closed and employee travel to the region is limited.
“The situation is emerging, and we’re still gathering lots of data points and monitoring it very closely,” Cook told Reuters.
Apple has contingency plans in place.
“We have alternate sourcing and contingency plans,” Cook said during Tuesday’s conference call. “Factories outside Wuhan are less clear. We are trying to factor in factory re-opening delays into our guidance.”