Due to employee protests at the Foxconn plant, which is the largest iPhone manufacturer, Apple will face
What to expect?
In the fourth quarter of 2022, iPhone shipments could drop by 20%, from previously projected 80-85 million to 70-75 million units, Kuo said.
This will also affect the revenue from sales of smartphones:according to the analyst's forecast, it will decrease by 20-30% or even more by the end of the quarter. He believes that due to long delays in delivery, demand for the iPhone 14 Pro and iPhone 14 Pro Max will drop significantly or disappear altogether: for example, many customers who would buy the iPhone 14 Pro right now will not return for it next year when gadget will be back in stock.
According to Kuo, the average utilization rateProduction capacity at the Foxconn plant was only about 20% in November and is expected to improve to only 30-40% in December. Part of the orders for the production of the 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 be no earlier than the end of December.
The problems at the plant began in October, whendue to the coronavirus outbreak, 20,000 workers have been quarantined in conditions with limited food. This led to the flight of many workers, after which Foxconn began to hire new people. But they also rebelled, as they were dissatisfied with working conditions and pay. Things remain volatile right now, with Foxconn already offering bonuses of up to $1,800 a month for employees to stay at the factory through December and January.