Apple warns of declining iPhone shipments as COVID disrupts Chinese factories

Apple expects iPhone 14 Pro and Pro Max shipments to decline Apple says Chinese factories are operating at sharply reduced capacity Apple Inc (AAPL.O) expects shipments of premium iPhone 14 models to be lower than before .TW) Demand for high-end smartphones assembled at the Zhengzhou factory has helped Apple stay on the bright side. Cupertino-California-based suppliers, although taking one place in the tech sector hit by consumer spending cuts due to inflation and soaring interest rates, include Canada Goose Holdings Inc (GOOS. TO) and Estee Lauder Companies Inc (EL.N) with local stores closed and lowered the forecast. “The facility is currently operating at significantly reduced capacity,” Apple said on Sunday without a d. Details on the scale of the decline. “We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we are now seeing more iPhone 14 Pro and iPhone 14 Pro Max shipments than previously expected. We expect it to be less.” Last month, Reuters reported that iPhone production could drop by as much as 30% in November at Foxconn’s Zhengzhou plant. The world’s largest – due to COVID-19 restrictions. A factory in central China, which employs around 200,000 people, is shaken by dissatisfaction over stringent measures to contain the spread of COVID-19 and many workers are leaving the site. Market researcher TrendForce cut its October-December iPhone shipment forecast to 3 million units from 80 million units last week due to factory issues. As a result of the investigation, it was found that the utilization rate reached about 70%. Apple, which started selling the iPhone 14 lineup last week in September, said Quincy Krosby, chief global strategist at LPL Financial, said, “Anything that affects Apple production will definitely affect the stock price,” and that customers should expect longer wait times. . Te, North Carolina.” But this is part of a much deeper story about the uncertainty surrounding the future of China’s economy… This headline is part of an ongoing saga about whether authorities have truth in their ongoing rumors about the Chinese economy. Some. China is debating whether some measures will be lifted in Q1.” On Monday, China reported the largest number of new COVID-19 infections in six months, with disruptions to the world’s second-largest economy spreading across the country since October. Over the weekend, health officials said they would stick to strict coronavirus containment, disappointing investors hoping for easing. Meanwhile, Apple expects to produce at least 3 million iPhone 14 handsets this year than planned due to sluggish demand for lower-end models. Monday News reported citing people familiar with the scheme. The world’s most valuable company, with a market capitalization of $2.2 trillion, predicted last month that revenue growth would slow from 8% in the previous quarter, but market observers were positive. “Given that Apple reported with positive guidance two weeks ago, I think this suggests a longer and more serious closure,” said Credit Suisse analyst. They estimate Apple’s revenue rose 3% this quarter to $73 billion, a 2% increase. Reuters GraphicsFOXCONN crop views. Foxconn of Taiwan is orld’s largest contract electronics manufacturer and Apple’s largest iPhone maker, accounting for 70% of global shipments. iPhone factories are located in India and southern China, but the largest is in Zhengzhou, Henan Province, eastern China. Local officials recently commented on cases of COVID-19 at the plant. Foxconn declined to disclose the number of infections or comment on the status of those infected. An official familiar with the matter told Reuters that Foxconn’s target is by the second half of November. The manufacturer also launched a recruitment campaign offering a one-time bonus of 500 yuan ($69) to workers who left the factory between October 10 and November 5. It also advertised a salary of 30 yuan per hour, which is higher than the basic salary of 17-23 yuan, which some workers told Reuters on. Keep residents away and allow only approved vehicles to be used. Read More Foxconn said the local government “as always has made it clear that it will fully support Foxconn.” “Foxconn previously expressed “careful optimism” in its fourth-quarter earnings guidance, but said it would “revise” on Monday. The fourth quarter traditionally saw Taiwanese tech companies sell smartphones, tablet computers in Western markets during the holiday season shopping. and other electronic products.Foxconn will report its third-quarter earnings results on Nov. 10. Shares of the company, officially Hon Hai Precision Industry Co Ltd, fell 0.5% in Monday’s trading while benching. The Mark Index (.TWII) rose 1.5% ($1 = 7.2135 Chinese RMB) as reported by Ben Blanchard and Sarah Wu of Taipei, Caroline Valetkevitch of New York and Jaiveer Shekhawat of Bengaluru; additional reports by Brenda Goh Miyoung Kim; Daniel Wallis and Edited by Christopher Cushing Our Standard: The Thomson Reuters Trust Principle.
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