Yesterday I reported on Apple facing a major reduction in the number of iPhone Pro (iPhone 14 Pro) models due to ongoing disruptions at Foxconn's largest manufacturing plant in China. A new report from leading Apple-focused analyst Ming-Chi Kuo suggests the shortage will reach 15-20 million fewer shipments than in previous years.
Kuo's prediction for iPhone 14 Pro shipments during the fourth quarter is 70-75 million units. It was previously estimated Apple would have between 80 and 85 million units ready. Kuo points out shipments are likely to fall 15-20 million short of expectation.
This is not because of a decrease in demand, but rather a supply issue. For example, right now in the United States both the iPhone 14 Pro and iPhone 14 Pro Max are sold out. People still want to buy these devices, but Apple cannot keep up because of production shortfalls.
Turmoil in Foxconn's main Zhengzhou manufacturing plant is causing Apple to lose millions of iPhone Pro units. In October, I reported on Foxconn issues in Zhengzhou amid the ongoing COVID-19 pandemic in China. The country is still swept by the virus and the Chinese government has taken a hardcore approach.
A source told Bloomberg that the situation is fluid and total estimates for lost production are not final. Even so, it is clear that Apple will see a reduction numbering millions of units this year. The situation could deteriorate further as COVID restrictions are likely to continue in China. Lockdowns and protection could hit production further.
Foxconn is Apple's biggest manufacturing partner and the main producer of iPhone devices. There are around 200,000 people working at its main Zhengzhou factory but there has been a COVID outbreak in the workforce.
Kuo points out that the production capacity in Foxconn's Zhengzhou is currently at just over 20% and will only be at 30-40% in December.
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