Apple Stock (NASDAQ:AAPL)
Research company Trendforce has again reduced its shipping projection after Apple (NASDAQ:AAPL) warned in November that difficulties in China connected to COVID-19 will result in fewer iPhone 14 Pro deliveries. As a result, Apple stock plunged.
As a result of ongoing labor constraints at Foxconn’s primary manufacturing plant in Zhengzhou, China, the market research company now predicts that apple will supply just 78.1 million iPhone 14 devices in 2022, which is a decrease from a prior forecast.
The labor, as mentioned above, constraints may not be rectified by the time the first quarter of 2023 rolls around. Thus TrendForce has reduced its estimate for the number of iPhones that will be shipped during that period to 47 million from its earlier projection of 52 million.
The research company TrendForce stated, “TrendForce further points out that China’s supply chain has begun to face a labor shortage in December.” The statement also said China made a “major adjustment” to its COVID-19 policy before the Lunar New Year break.
Recently, China has proceeded to roll back a significant portion of the stringent zero-COVID measures it enacted some years ago. The country recently eased restrictions placed on overseas passengers and downgraded COVID-19 to the Category B virus category.
At the beginning of this month, Foxconn announced that the “closed-loop” system that had been in operation at its facility in Zhengzhou, China, would no longer be maintained.
Foxconn is reported to have its most giant iPhone assembly factory in Zhengzhou. The company has provided incentives of 1,000 yuan, equivalent to $141.11, to workers who suggest persons employed to assist in expanding employment numbers at the plant.
Because of COVID-19 lockdowns and worker discontent at the Zhengzhou plant, Foxconn, also known as Hon Hai Precision (OTCPK:HNHPF), recently announced a significant decline in revenue for November. The company brought on this decline.
Needham, an investment company, lowered its sales and profit forecasts for Apple stock for the year 2023 last week, citing “poor iPhone demand” in China as the primary reason.
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