Apple falls 1.4% as worker unrest at China factory fuels supply concerns

Apple falls 1.4% as worker unrest at China factory fuels supply concerns

The growing worker unrest at the world's largest iPhone factory in China fanned fears of a deeper hit to the already limited production of the higher-end iPhone 14 models, as Apple Inc. fell by 1.4 per cent on Monday.

Reuters reported on Friday that the Foxconn-owned plant could see a further drop in November shipments as thousands of employees quit over strict COVID 19 restrictions to curb rising infections in China.

According to a source, there could be a shortfall of 6 million iPhone Pro units this year due to production-related problems, according to a Bloomberg News report.

The shortages kept consumers from buying high-end phones during Black Friday, the year's busiest shopping period, and are likely to dampen sales in the crucial holiday quarter.

Wedbush Securities estimated that a production snafus could affect between 5 per cent and 10 per cent of iPhone units in the current quarter. According to Christine Wang, the figure is around 10 million units, or 12 per cent, which is the figure that KGI Securities analyst Christine Wang pegged at about 10 million units, or 12 per cent.

Apple did not respond to a request for comment.

The ongoing challenges surrounding the return to normal levels of production at the Zhengzhou facility could limit the pace at which supply-demand equilibrium can be reached in the coming months, J.P. Morgan analysts said.

The iPhone 14 Pro and Pro Max models are currently not available for delivery home, and the same models are not available for in-store pickup, according to the brokerage.

Apple shares fell 3.4 per cent in November, compared with a 2 per cent gain in the Nasdaq Composite index.

The stock was one of the biggest percentage losers in the Nasdaq 100 index on Monday, weighing on the broader market.