Apple industry analyst Ming-Chi Kuo says iPhone 14 Pro and iPhone 14 Pro Max shipments in the fourth quarter of 2022 will be “significantly lower” than expected due to labor protests at Foxconn’s main iPhone factory in China.
Kuo said iPhone production at the factory in Zhengzhou has been “significantly affected” by the protests over unfavorable working conditions.
The total iPhone 14 Pro and 14 Pro Max shipments in 4Q22 will be 15–20 million units less than expected. Significant downside risks to Apple & iPhone supply chain due to Zhengzhou iPhone plant labor protests
Kuo says the average capacity utilization rate at the factory was only about 20% in November and is only expected to inch up to 30–40% in December. While Pegatron and Luxshare have each taken on approximately 10% of iPhone 14 Pro and 14 Pro Max orders from Foxconn, mass shipments will not be ready until late December at best.
Kuo believes that the production issues could result in iPhone revenue being “significantly lower than the market consensus by 20–30% or more” this quarter.
Kuo believes the lengthy shipping delays combined with the recession will cause demand for iPhone 14 Pro models to disappear, as many customers will not return once supplies improve.
iPhone 14 Pro orders are currently sitting at a four-week shipping delay at the least on Apple’s U.S. online store.