Apple Stock (NASDAQ:AAPL)
On Tuesday, Apple (NASDAQ:AAPL) stock reached a session low after a significant analyst said that the company’s iPhone 14 Pro sales might be much fewer than planned as the tech giant faces supply chain problems originating in China.
Ming-Chi Kuo, an analyst at TF International Securities, said in a tweet that sales of the iPhone 14 Pro and iPhone 14 Pro Max might be 15 million to 20 million units lower than projected.
According to Kuo, there are “significant negative risks” to Apple and the iPhone supply chain due to worker demonstrations at the Zhengzhou iPhone facility.
Following the tweet, shares of Apple (AAPL) dropped to a new low of $141.31, over 2% below their previous closing price. This brought the whole market with it.
Apple has been impacted due to recent demonstrations in China related to the country’s COVID-19 regulations, and Kuo is one of many analysts to make this observation.
Wedbush Securities, an investment company, said on Monday that the demonstrations in China over the weekend, triggered by the country’s stringent zero COVID-19 policy, may have had an even higher effect than predicted on the manufacture of the tech giant’s iPhones.
Wedbush Securities analyst Dan Ives noted in a research note that “the zero China Covid policy has been an utter gut blow to Apple’s supply chain” and that “the Foxconn demonstrations in Zhengzhou a bad eye for both Apple and Foxconn.”
Ives said that Apple might see an iPhone shortage of 5% or perhaps as high as 10% depending on how things play out over the next few weeks in China about production at the Foxconn facility in Zhengzhou and demonstrations all across the nation.
According to the analyst, some Apple outlets have had “severe” shortages of the iPhone 14 Pro, with inventory levels falling as low as 40% below the norm and delivery dates being pushed back into early January in certain instances.
According to a report published on Tuesday by CNBC, the restriction on the movement of residents in Zhengzhou, which is home to the majority of Foxconn’s iPhone production facilities, was lifted at midnight on November 29. Following this, “normal pandemic control measures will be implemented,” as stated by the city’s official WeChat account.
Due to unrest at Foxconn’s manufacturing factory in Zhengzhou, it was claimed earlier this week that Apple might experience a production deficit of as many as 6 million iPhone 14 Pro devices due to the disruption.
Featured Image: Pexels @ Nana Dua
Author Shariq Khan 
