- Protests in China have also caused unrest at Apple's major manufacturing hub of Zhengzhou which could lead to a production shortage of close to 6 million iPhone Pro devices this year. The news led to Apple shares dropping 2.6% on Monday. But according to an unnamed source, Apple and its subcontractor Foxconn anticipate being able to make up the difference in 2023.
- The discontent at the facility coincides with demonstrations over China's zero-Covid policy. Foxconn workers are protesting food shortages, payment-related problems, and the way the business has managed Covid-19 outbreaks. Around the nation, protests against the lockdowns have started, notably at the Foxconn iPhone manufacturing plant in Zhengzhou
Why it matters
According to Counterpoint Research, supply schedules for the iPhone 14 Pro and Pro Max are far behind schedule in terms of iPhone delivery. For phones ordered the previous week, it warned that there would be a 37-day delivery delay for buyers. Despite JPMorgan's assertion that the ongoing challenges with delays in returning the Zhengzhou facility to a regular level of production could hinder the rate at which "supply-demand equilibrium can be restored" in the coming months, supply looks to have increased from low levels.
