iPhone 14 Pro, expected decline in Apple’s revenue of 8 billion due to delays. Investment bank Piper Sandler expects Apple and Foxconn to be able to return to full production of the iPhone 14 Pro as early as December, so far the good news, but at the same time indicates that nevertheless the appeal will be missing about 9 million iPhone during the Christmas holidays, for a macato turnover for Apple that could reach up to 8 billion dollars.
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Although China has now lifted its latest COVID lockdown in Zhengzhou, a city near which Foxconn’s main iPhone factory is located, production is significantly behind when looking at the iPhone 14 Pro range. In a note to investors, as reports AppleInsider, Piper Sandler says that, overall, she continues to “believe that Apple remains a terrific brand.”
While it is cutting estimates of $8 billion for Apple’s December 2022 quarter revenue, which for Cupertino corresponds to the first quarter of fiscal 2023, analysts still evaluate the Cupertino multinational as a heavyweight, despite the temporary reduction due to unexpected events. This is what Piper Sandler’s note reads:
We know that Foxconn’s Zhengzhou plant is the main hub for iPhone manufacturing with more than 50% [of] assembled iPhones coming from this plant. We believe most of the outages took place in November where plant utilization may have dropped to 50% or lower
Recall that Foxconn has moved some iPhone production lines to India, but analysts at the investment bank don’t see it as significant.
In our opinion, India still accounts for less than 5% of total iPhone 14 production and is likely to help only a limited amount at this time.
The bank expects Apple “to do its best to recover some production in December”, and also that it “will prioritize the production of the iPhone 14 Pro over other models”. Separately, Piper Sandler also launched a biannual survey targeting teens to learn about their future plans to buy an iPhone: the study showed that 88% of US teenagers intend to buy one.