A new report by analyst Ming-Chi Kuo points to major problems Apple will face in the weeks following the holiday season. According to Kuo, Apple is expected to ship between 70 and 75 million iPhone 14 Pro and Pro Max models, 15 to 20 million fewer than originally expected. The figure is well above the missing 6 million units that Bloomberg suspected in a recent report.
The shortage got worse after a recent COVID outbreak in China, which has prompted factories to close. There were also worker protests at a Foxconn factory that produces iPhones. Kuo also noted that two other Chinese manufacturers, Pegatron and Luxshare ICT, will take about 10% of iPhone 14 and 14 Pro orders, respectively. That should catch some of the production, but not before the end of December. The affected iPhone 14 Pro phones are quite expensive, so Apple will clearly notice losses in this segment.
Currently, the iPhone 14 Pro and 14 Pro Max are out of stock in Apple stores in the US. New orders will not be processed until December 29th. Kuo believes people won’t wait to buy a new iPhone 14 Pro when the effects of a recession start to come into effect.
“Most of the demand for the iPhone 14 Pro series in the fourth quarter of 2022 will disappear and not be postponed amid the economic recession due to the significant gap between supply and demand.”Ming-Chi Kuo, Analyst
Follow the source link to read Ming-Chi Kuo’s full report.