The images went around the world last week. Several hundred workers fromFoxconn factory in Zhengzhouin China came to blows with local police. They denounce their working conditions, all in a context of very severe health restrictions in the Middle Kingdom.
A difficult last quarter of 2022 for Apple
This event comes at a very bad time for Apple, which manufactures a large part of its iPhone 14 Pro and Pro Max on site. According to forecasts by famous analyst Ming-Chi Kuo, this will severely impact the Cupertino company during the 4th quarter of 2022.
The expert thus reduced his iPhone delivery forecasts by 20% for the last quarter of the year. Concretely, he is counting on 70 to 75 million units, while other specialists are betting more on 80-85 million units.
In any case, the trend seems very clear, and the utilization rate of the factory in question was 20% in November. This should improve a little in December and be between 30 and 40%. However, we will remain well below normal production levels until 2023.
India's new El Dorado for the iPhone?
For consumers, we must therefore expect delivery times which could increase further. On Apple's side, this is also a significant shortfall for the end-of-year holidays, a period traditionally very favorable for sales. Ming-Chi Kuo is also counting on a drop in iPhone revenues of 20 to 30% compared to market forecasts for this fourth quarter.
Moving forward, Foxconn has already reportedly outsourced 10% of its iPhone 14 Pro and 14 Pro Max orders to other companies such as Luxshare and Pegatron. They also betabout Indiain order to diversify its supply chain.
i-nfo.fr - Official iPhon.fr app
By : Keleops AG
