Due to employee protests at the Foxconn plant, which is the largest iPhone manufacturer, Apple will face
What to expect?
According to Kuo, in the fourth quarter of 2022, iPhone shipments could decline by 20%, from a previously projected 80-85 million to 70-75 million units.
This will also be reflected in revenue from smartphone sales:According to the analyst's forecast, it will decrease by 20-30% or even more based on the results of the quarter. He believes that due to long delivery delays, demand for the iPhone 14 Pro and iPhone 14 Pro Max will decrease significantly or disappear altogether: for example, many customers who would buy an iPhone 14 Pro right now will not return for it next year, when the gadget will be in stock again.
According to Kuo, the average utilization rateProduction capacity at the Foxconn plant was only about 20% in November, and is expected to only improve to 30-40% in December. Some of the orders for the production of iPhone 14 Pro and 14 Pro Max were transferred to Pegatron and Luxshare, but we are talking about only 10%. According to the forecast, mass deliveries will not be earlier than the end of December.
Problems at the plant began back in October, whenDue to the coronavirus outbreak, 20,000 workers were quarantined in conditions with limited food. This led to the flight of many workers, after which Foxconn began hiring new people. But they also rebelled because they were dissatisfied with the working conditions and pay. Now the situation remains unstable: Foxconn is already offering bonuses of up to $1,800 per month for employees to stay at the factory during December and January.