Apple’s supply chain has been severely disrupted, and it has affected iPhone 14 Pro and iPhone 14 Pro Max shipments, which were in high demand. According to one expert, if things continue as they are, shipments of these two models may decline by as many as 20 million units in the fourth quarter of 2022.
According to a recent update from analyst Ming-Chi Kuo, Apple may ship between 15 and 20 million fewer iPhones in Q4. The technological behemoth recently declared that the rising number of COVID-19 cases in the area would temporarily halt work at its Zhengzhou assembly factory.
Shipments of the iPhone 14 Pro and iPhone 14 Pro Max would decline as a result of this setback, and given that it is the holiday season, this occurrence could not have come at a worse time for Apple.
Additionally, Kuo stated that overall, 70–75 million units are likely to be shipped in Q4 2022 despite the current worker unrest. Previously, it was anticipated that Apple will ship between 80 and 85 million handsets during the same time frame. Pegatron and Luxshare, two of Apple’s partners, have begun choosing just 10% of the iPhone 14 Pro and iPhone 14 Pro Max orders from Foxconn in an effort to strengthen the supply chain. Sadly, shipments won’t start until the end of December.
Due to the decline in shipments of the iPhone 14 Pro and iPhone 14 Pro Max, Kuo predicts that Apple’s revenue from iPhone sales may fall by 20 to 30 percent. As if things weren’t already bad enough, the California-based company had earlier instructed its supply chain to decrease the production of the iPhone 14 and iPhone 14 Plus due to a lack of demand and the inability to create the more popular versions quickly enough.
Apple is now building assembling facilities in Vietnam while boosting iPhone production in India with assistance from Foxconn in order to lower supply chain risks. However, it might take some time before the output of these two locations catches up to that of the Zhengzhou complex.
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