iPhone 14 Pro and iPhone 14 Pro Max shipments in Q4 2022 will be “significantly below” market consensus due to labor protests at Foxconn’s main iPhone factory, analyst Ming-Chi Kuo says in China.

Purple Side Perspective Feature for iPhone 14 Pro Purple
Kuo said today that iPhone production at the Zhengzhou factory had been “significantly affected” by protests over unfavorable working conditions, leading it to cut its forecast for iPhone shipments for the fourth quarter of 2022 by 20% to 70-75 million units, compared to a market consensus of 80-85 million units.

The plant’s average capacity utilization rate was only around 20% in November and is only expected to improve to 30-40% in December, according to Kuo. He said Pegatron and Luxshare had each secured about 10% of iPhone 14 Pro and 14 Pro Max orders from Foxconn, but said massive shipments wouldn’t happen until late December at the earliest.

Kuo thinks production issues could lead to iPhone revenues “significantly below market consensus by 20-30% or more” this quarter.

Due to long delivery delays and a recession, Kuo believes that most demand for iPhone 14 Pro models this quarter will “disappear” rather than be postponed, suggesting that many customers who would have purchased an iPhone 14 Pro right now won’t be coming back. order device in January or later once supply improves.

iPhone 14 Pro models are currently facing a shipping delay of at least four weeks on Apple’s US online store as the company struggles to maintain supply.

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