Apple Inc. said on Sunday that it now expects lower shipments of its high-end iPhone 14 Pro and iPhone 14 Pro Max devices, as COVID-19 disrupted production in China.
“We continue to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max models,” the company announced in a press release on Sunday evening. “However, we now expect iPhone 14 Pro and iPhone 14 Pro Max shipments to be lower than before and customers will experience longer wait times to receive their new products.”
acknowledged in its release that the COVID-19 issues have “temporarily affected” production of the equipment at the Zhengzhou site which is the “primary” assembly facility for the iPhone 14 Pro and iPhone 14 Pro Max. That facility is currently seeing “significantly reduced” operational efficiencies.
“We are working closely with our supplier to return to normal production levels while ensuring the health and safety of each employee,” the company said in the release.
Analysts discuss manufacturer Foxconn’s disruption in iPhone production at 2354,
The Zhengzhou facility for the past week amid the COVID-19 restrictions in the city.
UBS analyst David Vogt wrote on Wednesday, “Although Apple’s earnings were up only a week ago, the lack of supply at the high end of the market and the recent COVID lockdown in China could impact the Foxconn plant, Which could negatively impact iPhone units in the December quarter.” Press release. “While we believe iPhone demand does not deteriorate, a decline of a few million units is possible below our 86 million forecast.”
While Apple was the only big tech company to see its shares rise in the wake of its earnings report in late October, shares have struggled more since then. They last week recorded their worst weekly performance since March 2020.
Credit: www.marketwatch.com /