Analysts have lowered the forecast for current quarter shipments of
Gadgets

Analysts have lowered the forecast for current quarter shipments of the iPhone 14 Pro by 6 million units

Analysts at Morgan Stanley have revised their forecast for iPhone Pro shipments for the current quarter due to work disruptions at the Zhengzhou plant in China, the main manufacturing center that assembles smartphones for Apple. The outbreak of COVID-19 has meant that production of older models is expected to be reduced by 6 million units.

    Image source: Apple

Image source: Apple

Overall, factories assembling older iPhones are expected to ship 79 million smartphones instead of 85 million as previously predicted. In particular, we are talking about variants of the iPhone 14 Pro and 14 Pro Max that will be assembled in this Foxconn Chinese factory. Apple is likely to cut shipments due to a production crunch at the factory.

Previously, premium smartphones were considered relatively resilient to the general downturn in the electronics market and kept sales momentum high. At the same time, the market for mid-range and entry-level devices from companies like Xiaomi, Oppo and Vivo saw a double-digit percentage drop in demand. Even iPhones outside of the Pro series suffered. That’s why selling Pro models is particularly important for Apple, and the halt to production in Zhengzhou is even more painful than it could be.

According to Morgan Stanley, the lead time for iPhone 14 Pro and 14 Pro Max shipments has increased to 4-5 weeks from 2-4 weeks a month ago, with demand remaining strong and even some shortages. Analysts at the financial firm expect deliveries to be adjusted in the first months of 2023 due to unmet demand in 2022. As production resumes in Zhengzhou, uninterrupted production is a key success factor for Apple and its partner Foxconn, which owns the facility.

Over the weekend, local authorities near Zhengzhou arranged for workers to be brought into Foxconn’s plant to help the maker get back to full operations.

Just recently, Barron’s analysts also issued a rather pessimistic forecast – they reduced the forecast for iPhone shipments in the current quarter by 8 million units, including the iPhone 14 Pro / Pro Max – by 5 million units. JP Morgan experts made similar predictions.

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Johnson Smith

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