iPhone sales could fall 20 this half year and its

iPhone sales could fall 20% this half year, and it’s not just due to lockdowns in China

The longer the lockdown at Foxconn’s Zhengzhou plant, where many of the older models in the iPhone 14 family are manufactured, the more negative the forecasts from industry analysts become. UBS experts already believe that the lockdowns in Zhengzhou, combined with a drop in demand for younger smartphones in the family, will reduce iPhone shipments this year by 20% compared to last year.

    Image source: Apple

Image source: Apple

The agency shares these comments from UBS analysts Bloomberg. According to the authors of the forecast, the production volume of all models of the iPhone 14 family in the second half of this year will be reduced from 92 to 76 million units, or 20% compared to the delivery of the iPhone 13 in the same period in 2021. At the same time, it is important to observe how the increase in wait times for iPhone 14 Pro and iPhone 14 Pro Max may affect demand. The situation with the production of Apple smartphones in Zhengzhou in this and the coming quarters will largely depend on how quickly Apple and Foxconn can overcome the existing difficulties.

According to UBS analysts, Apple could well diversify the supply chains of older iPhone 14 models by entrusting production to Pegatron and Luxshare, which previously specialized in releasing mostly cheaper smartphones from the brand. In that case, next year Foxconn will produce only 65-70% of all iPhones, while the company’s share now reaches 75%.

Renowned analyst Ming-Chi Kuo recently said that Apple is unlikely to catch up in terms of iPhone 14 Pro and iPhone 14 Pro Max sales in the first quarter, and cannot catch up in the current quarter due to existing problems in Zhengzhou, which release about 6 million smartphones these two models. UBS experts assume that together with the younger models of the series, the decline in production will reach 16 million units in this half.

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Johnson Smith

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