Kuo: iPhone 14 Pro Sales Are in Big Trouble Due to Foxconn Factory Protests

[MacRumors]

iPhone 14 Pro and iPhone 14 Pro Max shipments in the fourth quarter of 2022 will be "significantly lower" than the market consensus due to labor protests at Foxconn's main iPhone factory in China, according to analyst Ming-Chi Kuo.

Kuo today said iPhone production at the factory in Zhengzhou has been "significantly affected" by the protests over unfavorable working conditions, leading him to cut his iPhone shipments forecast for the fourth quarter of 2022 by 20% to 70-75 million units, compared to a market consensus of 80-85 million units.

The average capacity utilization rate at the factory was only about 20% in November, and is only expected to improve to 30–40% in December, according to Kuo. He said Pegatron and Luxshare have each obtained about 10% of iPhone 14 Pro and 14 Pro Max orders from Foxconn, but said mass shipments will not be until late December at the earliest.

Kuo believes that the production issues could result in iPhone revenue being "significantly lower than the market consensus by 20–30% or more" this quarter.

Due to lengthy shipping delays and a recession, Kuo believes that most of the demand for iPhone 14 Pro models this quarter will simply "disappear" rather than be deferred, suggesting that many customers who would have purchased an iPhone 14 Pro right now will not return to order the device in January or later once supply improves.

iPhone 14 Pro models currently face at least a four-week shipping delay on Apple's online store in the U.S. as the company struggles to maintain supply.

Article Link: Kuo: iPhone 14 Pro Sales Are in Big Trouble Due to Foxconn Factory Protests

 

[Justin Cymbal]

I got a really good deal on my iPhone 14 Pro - I traded in my iPhone 12 Pro to Verizon and got $800 - I only paid $999 for the iPhone originally

I got the one terabyte model and it was delivered almost a week after I ordered it - back in October

I hope that this unrest gets worked out, things start to get back to normal quickly and iPhone production is able to resume as soon as possible

 

[anthogag]

It's alright, I have my 14 Pro Max. It could mean higher trade-in value when I upgrade to iPhone 15 Ultra.

 

[MayaUser]

"We want more money, or no iphones for the people"
People should protest and hault everything if they dont get the respect they deserve

 

[Unggoy Murderer]

Hopefully this adds to the number of reasons to move production out of China into other markets.

The behaviour of the Chinese "government" has been atrocious for many years now. Enough is enough.

 

[TheYayAreaLiving 🎗️]

Wish, Apple had an assembly plant running in India full force. Apple just needs to get out of China. This is not a wake-up call anymore.

 

[timber]

Placing all your eggs in one basket can be very efficient.

But when things go wrong, they go really wrong.

 

[Unggoy Murderer]

Wish, Apple had an assembly plant running in India full force. Apple just needs to get out of China. This is not a wake up call anymore.

100%. It was great to see "Made in India" on the back of my grandad's iPhone 12 box a couple of months ago. And I liked seeing "Made in Vietnam" on the AirPods.

There is so much untapped potential in these areas, we just need the businesses (like Apple and Foxconn) to actually invest in these areas, and go for it.

 

[Spaceboi Scaphandre]

I think there's more important things to worry about with China other than iPhone 14 Pro supply. Chinese citizens deserve better than Xi Jinping and the entire CCP.

 

[poematik13]

China's "Zero covid" policy is basically a form of implicit warfare where they manipulate global supply chains at their whim to **** with and disadvantage the western world. It's a direct response to western sanctions on their chip tech, etc.

Everybody needs to move manufacturing to india, mexico, vietnam etc Asap

 

[TheYayAreaLiving 🎗️]

Wish, Apple had an assembly plant running in India full force. Apple just needs to get out of China. This is not a wake-up call anymore.

This is what I want to see. Make it happen, Apple.

Enough said.

 

[ILoveCalvinCool]

We should be more concerned about the workers than about iPhone 14 supply.

 

[Steve686]

Apple just won’t move away from China.

Cheaper labor isn’t always better, hmmm?

 

[w00master]

Apple just won’t move away from China.

Cheaper labor isn’t always better, hmmm?

They can't which is a misstep on Apple's part. They absolutely need to start moving their manufacturing out of China, but this will take a long time unfortunately.

 

[giggles]

You can tell Kuo wanted to max-FUD Apple by the fact he added that last part about demand disappearing next quarter. (Kuo, now part-time economist!)

 

[huge_apple_fangirl]

Time to get out of China, Apple. The best time was four years ago. The next best time is today.

 

[TheYayAreaLiving 🎗️]

Apple just won’t move away from China.

Cheaper labor isn’t always better, hmmm?

I agree and it's costing Apple millions in dollars losing in sales. The revenue will be lower.

Apple has a huge problem with an iPhone factory in China | CNN Business

A violent workers' revolt at the world's largest iPhone factory this week in central China is further scrambling Apple's strained supply and highlighting how the country's stringent zero-Covid policy is hurting global technology firms.

www.cnn.com

 

[xxray]

Apple just won’t move away from China.

Cheaper labor isn’t always better, hmmm?

I don’t disagree with you, but it’s not just about cheap labor. China skill/expertise in manufacturing isn’t fully matched anywhere else. This is why there needs to be investment elsewhere.

 

[sw1tcher]

Due to lengthy shipping delays and a recession, Kuo believes that most of the demand for iPhone 14 Pro models this quarter will simply "disappear" rather than be deferred, suggesting that many customers who would have purchased an iPhone 14 Pro right now will not return to order the device in January or later once supply improves.

This isn't necessarily a bad thing though unless you're Apple or an Apple shareholder who's concerned about the near term performance of the stock.

This disappearing demand will help with inflation. And with people keeping their current phone longer than normal they'll be able to maximizing its useful life.

 

[herocero]

Hopefully this adds to the number of reasons to move production out of China into other markets.

The behaviour of the Chinese "government" has been atrocious for many years now. Enough is enough.

Decades. Has been atrocious for DECADES now.

*family fled Guangzhou in the 40s, property owners during the communist war wasn't the en vogue position to be in*

 

[SactoGuy18]

I don’t disagree with you, but it’s not just about cheap labor. China skill/expertise in manufacturing isn’t fully matched anywhere else. This is why there needs to be investment elsewhere.

This is why I expect Apple to aggressively invest in India to support their Indian factories. I wouldn't be surprised that by 2025 Apple sources the majority of their iPhones from India.

 

[kliq]

Hopefully this adds to the number of reasons to move production out of China into other markets.

The behaviour of the Chinese "government" has been atrocious for many years now. Enough is enough.

Yes, let's just move the production to another country that abuses its citizens instead of working with China/Foxxcon to get these people raises.

 

[Steve686]

I don’t disagree with you, but it’s not just about cheap labor. China skill/expertise in manufacturing isn’t fully matched anywhere else. This is why there needs to be investment elsewhere.

Agreed.

Kids aren’t born with technical skills. Move the plants and train a workforce to match the skills needed.

Yes, it’s an expensive investment, and no matter where you go, there are no guarantees there won’t be issues that can cost millions of dollars as in China.

But moving away from a regime that treats its citizens like they do should be Apple’s main priority. And I am part Asian with relatives in Hong Kong so it is a pretty personal matter to me.

 

[jsalda]

Hopefully this adds to the number of reasons to move production out of China into other markets.

The behaviour of the Chinese "government" has been atrocious for many years now. Enough is enough.

Move to other markets = less ¥ for China = (hopefully)changes in their political system = better conditions for the people of China

 

[sw1tcher]

This is why I expect Apple to aggressively invest in India to support their Indian factories. I wouldn't be surprised that by 2025 Apple sources the majority of their iPhones from India.

It's suggested that it'll be 25 percent

Apple Expected to Move 25% of All iPhone Production to India by 2025

Apple will move 25% of its entire iPhone production line to India by 2025 as it looks to diversify its supply chain, JP Morgan analysts said (via...

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