Without a doubt, the sanitary restrictions at Foxconn’s largest factory in Zhengzhou could have a significant impact on Apple’s ability to produce the iPhone 14 Pro and iPhone 14 Pro Max in sufficient quantities. Even Apple itself has expressed concern about this process, which is not entirely Apple-specific. Analysts at JP Morgan have also revised their forecast for sales of iPhone 14 smartphones downwards for the current quarter.
As the resource explains Barrons, the lockdown in Zhengzhou will force Apple to reduce shipments of iPhone 14 Pro and iPhone 14 Pro Max by 5 million units for the current quarter compared to the target, and shipments of all other iPhone models will be reduced by 3 million units reduced. Apple will only be able to release 74 million smartphones in the current quarter instead of the originally planned 82 million.
On the other hand, as JP Morgan officials expect, the number of iPhones released in the next quarter could increase from 56 to 61 million, offering an opportunity to cover the pent-up demand that arose in the current quarter. According to the source, Apple’s revenue will hit $121 billion this quarter, down 3% year over year, while earnings will fall 9%. At the end of the full fiscal year ending next September, Apple can’t make more than $407 billion and post earnings of about $6.25 per share.