November 22, 2024
Foxconn COVID Lockdown Expected to Have Minimal Impact on 4Q22 iPhone Shipments [Kuo]

Foxconn COVID Lockdown Expected to Have Minimal Impact on 4Q22 iPhone Shipments [Kuo]

Posted October 31, 2022 at 2:46pm by iClarified
Another COVID lockdown in China has forced Apple assembler Foxconn into closed-loop production. However, TF International Securities analyst Ming-Chi Kuo believes this will have a minimal effect on fourth quarter iPhone shipments.

Foxconn originally planned to gradually reduce iPhone production capacity from Nov-Dec to cope with the seasonality. After the Zhengzhou iPhone plants entered closed-loop production, the plan to reduce iPhone production capacity will postpone. More than 10% of global iPhone production capacity is currently affected as Foxconn's Zhengzhou iPhone plants suddenly entered closed-loop production without warning. his incident has not changed the current iPhone supply chain shipment forecast. It's expected that Foxconn's production capacity will gradually improve within a few weeks, and there should be a limited impact on the 4Q22 iPhone shipments.

Notably, Kuo says Apple is discussing the possibility of switching iPhone 14 production lines at Pegatron and Luxshare ICT to the iPhone 14 Pro. Luxshare could start shipping the Pro models early in the first quarter of 2023.


Although costs will rise, Kuo believes that suppliers in China should improve their closed-loop production efficiency with the goal of reaching the same output as normal.

Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for more Apple updates.


Foxconn COVID Lockdown Expected to Have Minimal Impact on 4Q22 iPhone Shipments [Kuo]
Add Comment
Would you like to be notified when someone replies or adds a new comment?
Yes (All Threads)
Yes (This Thread Only)
No
iClarified Icon
Notifications
Would you like to be notified when we post a new Apple news article or tutorial?
Yes
No
Comments
You must login or register to add a comment...
Recent. Read the latest Apple News.
RECENT
Tutorials. Help is here.
TUTORIALS
Where to Download macOS Sequoia
Where to Download macOS Ventura
AppleTV Firmware Download Locations
Where To Download iPad Firmware Files From
Where To Download iPhone Firmware Files From
Deals. Save on Apple devices and accessories.
DEALS