Apple iPhone Pro production shortfall could be 6 million this year

According to Bloomberg, the production shortfall could be 6 million Apple iPhone Pros this year due to unrest at one of China's biggest manufacturing centers.

The Foxconn Technology 2354Foxconn Technology 2354 facility in Zhengzhou, which makes the majority of Apple's premium and most popular phones, has been struggling with staff agitation for weeks as Chinese workers rebelled against the Communist regime's draconian COVID 19 lockdown policy.

A resurgence of unrest over the weekend, which included protest across China, could exacerbate the situation, according to Bloomberg s source who has knowledge of Foxconn's assembly lines. Apple AAPL has lowered its production target from 90 million units to 87 million units. In 2023, Foxconn believes it can make up for any shortfall from Zhengzhou. Frustration over lingering COVID 19 lockdowns in China and concerns about tension between Washington and Beijing has encouraged Apple to look elsewhere for production sites, and it has recently begun building iPhone 14 s in Chennai, India. According to JP Morgan analysts, Apple plans to produce 25% of all its products outside China by 2025, compared to 5% currently. Apple s stock has dropped 17% this year, nearly in line with the 16% pullback for the S&P 500 SPX, which is a broader picture of the S&P 500 SPX.