Foxconn
(Photo : REUTERS/Tyrone Siu/File Photo) FILE PHOTO: The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's building in Taipei, Taiwan March 30, 2018.

The mobile phone industry warns of the adverse effects of Wuhan coronavirus on output and profits as businesses and factories remain closed in China to help curb the spread of a deadly outbreak.

According to Reuters, Taiwan's Foxconn aims to restart operations at factories in China next week frequently. However, the company could take one to two weeks from then to resume complete manufacturing because of the coronavirus outbreak.

Foxconn requests to reopen factories in China

Foxconn, which makes smartphones for worldwide providers including Apple, filed requests to reopen factories with Chinese authorities, an insider told Reuters. The insider added the full resumption of operations was not possible until late February due to travel restrictions imposed to curb the virus.

A delay in the resumption of operations should have an effect on the global technology supply chain and shipments to Foxconn's customers, including Apple.

ALSO READ: Ming-Chi Kuo Says Coronavirus May Negatively Affect Apple's Q1 Shipping Forecast

A source told Reuters that roads are closed in a few parts of China. Nobody knows if the workers could return in time, the source added. 

The Foxconn's peak management is in a "chaotic" situation, according to the source, as the company scrambles to meet different requirements for the resumption of operations set by various local governments across China.

"A full resumption will take as a minimum one to two weeks from February 10," the source said.

Several local officials in China, according to the source, are asking companies to place workers return from different provinces under a three-day quarantine - including employees for massive agencies like Foxconn.

Production halt affects Foxconn's earnings this year

The production halt is set to hit Foxconn's earnings for 2020, but the company continues to balancing the effects of the situation, the resource person stated.

Foxconn refused to comment on its production practices. However, the company made sure that it would preserve to fulfill all international manufacturing obligations.

ALSO READ: Apple And Foxconn Accused Of Violating Labor Laws To Build New iPhones

Foxconn, the world's biggest agreement electronics manufacturer, was making plans to make sure the health and safety of its masses of heaps of people.

According to an internal document reviewed by Reuters, the organization will hire local people while allowing break day for the ones who can not return long distances to get back to work. Foxconn's factories depend on a huge quantity of migrant people from rural areas of China.

'Significant uncertainty'

Qualcomm Inc., a giant U.S.-based chipmaker, warned the potential risk posed by the coronavirus outbreak to the mobile phone industry, with viable effects on production and sales.

Qualcomm, the world's largest provider of "modem" chips that connect mobile phones and different devices to wireless facts networks, pulled down its stocks despite signs that an enterprise downturn ends.

ALSO READ: With The Snapdragon 1000, Qualcomm Gets More Serious About The PC Market

Qualcomm's chief monetary officer, Akash Palkhiwala, said the employer expects "large uncertainty on the impact from the coronavirus on handset call for and delivery chain."

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