On Monday, Apple Inc. (AAPL.O) stock dipped almost 2% as mounting discontent at a crucial Chinese facility stoked concerns that it will further hamper the already limited manufacturing of the more expensive iPhone 14 models.
The largest iPhone factory in the world, run by Foxconn (2317.TW), may experience a further decline in November shipments because of employee dissatisfaction and an increase in COVID-19 cases nationwide, according to Reuters on Friday.
Separately, reports claimed to quote a source earlier in the day that production-related issues might result in a deficit of 6 million iPhone Pro devices this year.
“The ongoing challenges around delays in returning to a normal level of production at the Zhengzhou facility could limit the pace with which supply-demand equilibrium can be reached in the coming months,” according to J.P. Morgan analysts.
They said that, with the exception of China, where the process is still lengthy, lead times for Pro models have eased.
According to the brokerage, customers in the United States must wait roughly 33 days for the delivery of their iPhone 14 Pro and Pro Max versions, and the same devices are not available for in-store pickup.
According to Wedbush Securities, Apple might see volume losses because of production hiccups in the first quarter, with at least 5% of units potentially affected.
To read our latest blog on “Foxconn, an Apple supplier, has closed its Shanghai factory,” click here