Lockdown at Foxconn Zhengzhou facility will have a more significant impact on Apple smartphone production than
What is known
The factory in Zhengzhou is the largest in the world.factory for the production of iPhone 14 Pro and Pro Max smartphones. Last week, even Apple itself admitted that quarantine restrictions would negatively affect production. At the same time, analysts predicted that deliveries would be reduced by 3-5 million pieces.
A week later, experts adjusted the forecast downward. So, instead of the planned 82 million smartphones, the Cupertino company will be able to put only 74 million models of the iPhone 14 series on the market.
However, during the first three months of 2023calendar year, Apple will be able to offset some of the losses. Analysts at J.P. Morgan expects that in the first quarter of calendar year 2023, the American company will supply 61 million smartphones to the market instead of 56 million, partially satisfying pent-up demand that will form before the end of this year.
In the current quarter, Apple will receive revenue in the amount of$121 billion, down 3% year-on-year. The profit of the company from California will decrease by 9%. Apple's next fiscal year, which ends in September, will generate $407 billion (-$2 billion) in revenue and $6.25 (-$0.15) per share.
Source: Barron's