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Apple’s plight in China

The clashes at the Zhengzhou iPhone factory exposed the turmoil in Apple’s supply chain.

The past few days have been tough for Apple as tensions escalate at its main iPhone factory in Zhengzhou, China.

More recently, Bloomberg reported that factory unrest has reduced production of Apple’s iPhone Pro lineup by as much as 6 million units. The situation at the iPhone factory remains very unpredictable so far and will continue to affect production levels in the near future.

Apple lost 6 million iPhones to China
The extent of the production deficit will depend on how quickly Foxconn resumes operations and recalls workers following last week’s protests. According to Bloomberg, if the lockdown continues for several weeks, production activities will continue to be delayed.

Meanwhile, Wedbush Securities analyst Dan Ives also predicts that Apple’s iPhone sales will drop by 5-10% this quarter due to disruptions at the Foxconn factory.

In fact, according to UBS analyst David Vogt, the wait times for the iPhone 14 Pro and 14 Pro Max in the U.S. and China are the longest ever. US users need to wait 34 days to receive the device, while the Chinese market can wait up to 36 days.

Vogt also said that only 35-40% of iPhones are expected to be produced, leading to shortages in the fourth quarter or even the first quarter of 2023. Experts say Apple can only produce 83 million devices in the first quarter. next quarter due to “recent supply bottlenecks”.

During this period of time, the difficulties faced by the workers at the Foxconn factory in Zhengzhou led many to decide to leave their hometowns. Meanwhile, new workers joined in as Foxconn promised high wages and good benefits, but ended up protesting over wage arrears and poor living conditions.

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