December 1, 2022 2:10 PM | 1 min read
- Analyst at Piper Sandler cut their revenue and iPhone sales estimates for Apple Inc’s AAPL December quarter, as Beijing’s strict lockdowns hamper production at the most significant iPhone factory in Zhengzhou, China.
- The analysts expect $119 billion in revenue for the current quarter, down from the prior $127.3 billion, with iPhone unit sales of about 74 million against 83 million previously expected, Reuters reports.
- More than 50% of assembled iPhones come from Hon Hai Precision Industry Co Ltd HNHPF Foxconn’s Zhengzhou plant.
- The majority of the disruptions took place in November, where utilization for the plant may have fallen to 50% or below, the analysts said.
- Also Read: Bummer For Premium iPhone Lovers This Holiday Season – Best Buy Warns Against Supply Crisis
- China’s manufacturing and services activities plunged further in November to seven-month lows, official data showed, stung by the country’s zero-COVID policy and rising infections that analysts said will hurt the economy well into 2023.
- Production woes were aggravated for Apple by large-scale labor unrest in China, where Foxconn workers clashed with security personnel in Zhengzhou.
- The analysts said Apple might prioritize iPhone 14 Pro production over other models, given the higher average selling price for the product.
- Price Action: AAPL shares traded higher by 0.05% at $148.10 on the last check Thursday.
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