The iPhone 14 Pro and Pro Max model shipments could miss market expectations by up to 20 million units in the holiday quarter due to labor unrest at a major Chinese factory, according to TF Securities analyst Ming-Chi Kuo.
Kuo is the latest to flag a hit to the world's most valuable company from protests over pay and strict COVID-19 curbs at the world's biggest iPhone factory, the Foxconn-owned plant in the central city of Zhengzhou.
He trimmed his estimate for quarterly iPhone shipments by about 20 per cent to between 70 million and 75 million units, compared to the market consensus of 80 million to 85 million units.
Apple shares were trading down more than 2 per cent, which is expected to add to the 6 per cent decline this month due to concerns over shipments in the all-important holiday sales season.
Kuo said in a blog post on Tuesday that the supply shortfall could erase demand for the more popular Pro models, instead of deferring sales, as consumers struggle with a weaker economy.
Other Apple analysts expect sales to pick up once production constraints are lessened and more Pro models become available.
CFRA Research analyst Angelo Zino said that Pro devices are sold out into early January, but we expect the missed revenue to trickle in the March-quarter.
The constraints are the worst possible time and are the most severe since the early days of the epidemic, according to Zino.
Some analysts said that the challenges could be extending into 2023.
Zeno Mercer, research analyst at ROBO Global said, "I can't imagine 2023 being a solid year for Apple's iPhones."
If you want to make an upgrade, you should have disposable income for next-gen phones.