According to Reuters, further reductions in iPhone smartphone supply are expected at the end of November. This was reported by a source who confirmed that tens of thousands of employees from the Foxconn factory had left the company. Foxconn’s largest iPhone factory in Zhengzhou, or “iPhone City”, has had major problems all week. Workers’ dissatisfaction turned into numerous clashes with security guards alongside open protests.

Foxconn eventually apologized for a “technical error” with payment information that occurred during the hiring of the most recent group of new employees. Workers’ unrest has also been exacerbated by strict COVID restrictions, forcing the factory to operate in a “closed loop” mode and house newcomers in dormitories with COVID-infected people. The company offered each protester about $1,400 to resign and leave the factory site.

The offer has sparked a lot of interest, according to new data: A Reuters whistleblower familiar with the situation says more than 20,000 workers have accepted Foxconn’s offer. They were mostly newcomers who had not yet worked on the production lines, took the money and left. More than 200,000 people worked at the factory before the strikes.

As Reuters wrote, this should have a negative impact on iPhone production and thus supply. On November 7, Apple already said it expects a drop in supply for the iPhone 14 Pro and Pro Max. At the same time, Best Buy warned this week of a shortage of new smartphones during the holiday season.

Some analysts estimate that around 10 million fewer iPhones will be produced this year than expected. Others estimate that sales could fall by 25-30% from what was planned. On the other hand, a Foxconn source told Reuters that the incident had a major impact on the company’s public image, but not much on Foxconn’s capabilities, as the people who left had not yet been trained and started working.