iPhone: The third quarter of Fiscal Year 2022–23 saw a detrimental impact on the production of the iPhone 14, the entry level model in the iPhone 14 series, as a result of employee unrest at a major Chinese manufacturing plant caused by strict Covid-19 restrictions imposed by Chinese authorities. Due to a sharp decline in demand for entry-level iphones, analysts predict that this year’s production output of iphones will fall 16 million devices short of expectations.
The Analysts further slashed their prediction for the entire production of the iPhone 14 to 76 million, from 92 million units for the second half of 2022, which is a 20% drop from the previous year. According to sources, the ongoing disruption at Foxconn’s largest iPhone manufacturing facility in the Zhengzhou district would cause Apple to lose up to 6 million iPhone Pro models. The vast majority of iPhones are built at the Foxconn campus in Zhengzhou, which employs about 200,000 people.
Production Output of Entry level iPhones have slumped by 20 percent
Industry sources have stated that the speed with which Apple and Hon Hai can resolve the challenges at Zhengzhou is key to 2022’s fourth quarter and 2023’s first volume.It may be noted that iPhone 14 Pro and iPhone Pro Max are the most in demand handsets from iPhone stable, offsetting the slump in sales of regular iPhones
The Foxconn predicament serves as an illustration of the risks Apple faces by depending on massive production facilities in China at a time when trade relations and policy are uncertain.
iPhone 14 Pro and iPhone Pro Max are most in demand handsets
Industry insiders have also warned that, as consumers grapple with a weakening economy, the lack of supplies may actually erase the demand for the more well-liked Pro Models rather than postpone sales. Additionally, it has been speculated in industry circles that Apple won’t have a strong year in 2023.
However Apple analysts expect sales to pick up once production constrains ease and more Pro Models become available in the market.
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