Apple may be missing several million iPhones by Christmas. Its main supplier, Foxconn, is unable to fulfill orders from the manufacturer due in particular to the measures against Covid in China.
The Christmas holiday season is of course strategic for all manufacturers of electronic products, it is even more so for Apple: it is actually in the last quarter that the company achieves its biggest revenue of the year. . Apple’s activity is surfing iPhone sales, which are traditionally in full swing during this period. Over time, the Californian manufacturer has learned to handle this increase in demand, but in 2022 things are different.
Fewer iPhones for Christmas
The increase in cases of Covid-19 contamination is causing serious tension within the main Chinese factory that manufactures iPhones, Foxconn in Zhengzhou. In recent weeks, labor unrest has taken place due to the very strict restrictive measures introduced as part of the “zero Covid” policy of the Chinese authorities. Added to this were salary problems and bonus payments that were not honored by Foxconn…
Morgan Stanley analysts estimate the shortage of iPhone 14 Pro units at around 6 million for the year. A figure given before unrest broke out in Zhengzhou last week, it would mean Apple would have to make do with even fewer iPhones in stock. According to BloombergApple reportedly reduced its production target to 87 million smartphones in 2022, 3 million less than previously expected.
Foxconn should catch up next year, but at Christmas and in the fourth quarter there are fewer sales for Apple. So of course there is no doubt that the manufacturer will survive it without problems… But for all those who had ordered an iPhone 14 Pro for Christmas, it is now almost too late.