A new report from Apple analyst Ming-Chi Kuo points to a major shortage Apple will face in the remaining weeks of this holiday shopping season. According to Kuo, Apple is expected to ship between 70-75 million iPhone 14 Pro and Pro Max units, 15-20 million fewer than originally planned. The number is significantly more than Bloomberga shortage estimated at 6 million units by a recent report.
Total iPhone 14 Pro and 14 Pro Max shipments in 4Q22 will be 15-20 million units less than expected. Significant downside risks to Apple and iPhone supply chain due to worker protests at Zhengzhou iPhone planthttps://t.co/tUkKE9TGVG
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) November 29, 2022
The shortages are attributed to the recent COVID outbreak in China, which prompted factories to close and sparked labor protests at a Foxconn factory where iPhones are made. Kuo also noted that Pegatron and Luxshare ICT, two other Chinese manufacturers, will pick up around 10% of iPhone 14 and 14 Pro orders, respectively. This should help make up some of the shortage, but not until the end of December.
These iPhone 14 Pro models are priced quite steeply, so a shortage of that many iPhones would significantly reduce Apple’s iPhone revenue for Q4 2022.
Apple iPhone 14 Pro and iPhone 14 Pro Max
Currently, the iPhone 14 Pro and 14 Pro Max are sold out at Apple Stores in the US, and orders won’t be fulfilling until December 29 at the time of this writing. Kuo believes people won’t wait to buy a new iPhone 14 Pro when the effects of a recession start to strengthen. Instead, Kuo says “most demand for the 4Q22 iPhone 14 Pro series amid the economic downturn will disappear due to significant supply-demand gap rather than deferred.”
Go to the link to read Ming-Chi Kuo’s full report.
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