Apple adds $18 billion in market value after its Chinese factories accelerate post-coronavirus re-openings

Apple added as much as $18 billion in market value on Wednesday after Reuters reported its Foxconn iPhone plants will speed up their return to regular production outputs.

Foxconn aims to reach 50% output by the end of February after the coronavirus outbreak forced its facilities to shut down for weeks, Reuters reported Wednesday, citing an unnamed source with direct knowledge of the plans. The contract manufacturer, which produces Apple's iPhones and AirPods, also plans to resume 80% of China production in March.

"Shipments will be affected, but it's too early to give an exact number. We might still have a chance to make it with overtime, but we also need to monitor consumer sentiment to come for the end products," the source told Reuters, referencing electronic devices including smartphones.

Apple shares traded as much as 1.3% higher in Wednesday trading.

The accelerated output plans follow a Monday Reuters report noting only two factories were able to reopen this week. Foxconn's Zhengzhou and Shenzhen plants were authorized to resume production, but only 10% of the factory's employees returned to work on February 10, according to Reuters. The company's Kunshan factory was approved to resume production on Tuesday. Apple saw as much as $27 billion erased from its market value on Monday following the Reuters report.

Numerous factories, travel hubs, and retail locations have been forced to shut their doors for weeks as the coronavirus outbreak cripples China's economy. Starbucks and Nike both closed at least half of their China locations to curb the virus' contagion, and Tesla halted production at its new Shanghai Gigafactory for more than a week due to the government-ordered shutdown.

The outbreak has killed at least 1,100 people and infected more than 45,000 since starting in December. Only two deaths have been reported outside of China: one in the Philippines and another in Hong Kong.

The pandemic has already prompted economists to lower their expectations for growth around the world. The outbreak will drive a "modest hit to annual-average global GDP" of 0.1 to 0.2 percentage points in 2020, Goldman Sachs analysts wrote on February 4. China's economy will face the biggest hit, with Goldman anticipating a 1.6 percentage-point drop in economic growth in the first quarter.

The tech giant warned in its January 28 earnings report that coronavirus-related uncertainties prompted it to issue "wider-than-usual" guidance for second-quarter revenue.

Apple traded at $323.71 per share as of 11:10 a.m. ET Wednesday, up 11% year-to-date.

The company has 28 "buy" ratings, 16 "hold" ratings, and four "sell" ratings from analysts, with a consensus price target of $336.49.