The world’s largest iPhone plant, China’s Foxconn, will suffer from a larger-than-expected reduction in manufacturing following an upsurge in unrest in recent days.
Last week, thousands of workers blocked entry to Foxconn and others quit following China tightened its covid lockdown.
The biggest problem is that the interruptions occurred days before the Christmas and New Year sales, and when the workers also have the most days for vacations and annual leaves.
In this way, the cut in iPhone production, which is expected to be 30 percent in November, will be much greater, as confirmed in Archyde.com.
Foxconn is the only factory that is manufacturing premium iPhone models these days, especially the iPhone 14 Pro.
According to the same agency, it is “highly unlikely” that Foxconn will resume normal iPhone production before the end of this month.
Neither Apple nor Foxconn commented on the release.
Victoria Scholar, chief investment officer at consultancy Interactive Investor, told Archyde.com that “Worker unrest at Foxconn’s China plant will affect Apple’s smartphone shipments.”
Due to protests in China, 30% less iPhone 14 Pro
With these versions, Apple shares fell 2 percent in weekend trading, ahead of the open on Monday, November 28.
The Nasdaq Index was down just 0.2% in the same period.
In the retail sector they already warn regarding the problems. For example, Best Buy said last week that it expected high-end iPhones to be in short supply in stores this Christmas sales season.
Likewise, in all Apple stores in the United States, there were shortages of high-end iPhones in the purchases of the Black Friday due to shipping problems from China.
At the Foxconn plant in Zhengzhou, hundreds of workers protested, blocking the entrance and breaking surveillance cameras and windows, according to images posted on social networks.
According to a calculation of KGI Securitiesif the problem continues until December, Apple will lose to sell regarding 10 million units of iPhone, which is 12 percent less iPhone sales in the last quarter of 2022.
another consultant, Wedbush Securitiesestimates that Apple stores around the world now have 25 to 30 percent fewer iPhone 14 Pros than usual for the weeks leading up to Christmas shopping.
So far, the only official announcement from Apple came on November 7. There, the Cupertino company said it expected lower-than-expected iPhone 14 Pro and iPhone 14 Pro Max sales.
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