Things are not going well for Apple after violent protests erupted at the Foxconn factory in Zhengzhou. A quick reminder of the facts: At the beginning of the month, the factory responsible for producing most of the iPhone 14s closed after the increase in Covid-19 cases in the region. Still, some workers are forced to work even when the risk of contagion is at its peak. What had to happen has happened: A massive panic and ensuing mass capitulations have been shaking the factory for several days.
Of course, all this will affect Apple’s overall production. The Zhengzhou factory is the cornerstone of iPhone 14 production, with an average of 80 million units produced each quarter. However, as of this week, production has completely stopped. According to renowned analyst Ming-Chi Kuo, this is a real disaster for the Cupertino company. In total, it estimates its production will only reach 70 to 75 million units for this 4th quarter of 2022, a drastic 20% drop from normal.
iPhone 14 production dropped after protests
The analyst explains that the capacity of the Zhengzhou factory is currently only 20%. Apple hopes to increase that to 39% or 40% during the month of December, but for now nothing is less certain. In any case, we should now expect massive stock shortages at all retailers, especially with the end of the year celebrations approaching.
In fact, Ming-Chi Kuo predicts a 20% to 30% drop in Apple’s sales this Q4, citing the particularly high price of the iPhone 14 as the reason. According to the expert, this high price, combined with low availability especially during this economic recession, will cause demand for the iPhone 14 Pro to drop in the coming weeks.
Source : Ming Chi Kuo
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