Apple’s iPhone 14 Pro supply continues to be negatively impacted by CCP-mandated COVID-related production slowdowns at Foxconn’s main assembly plant in China.
Patrick Seitz for Investor’s Business Daily:
However, Apple is unlikely to lose sales to rival Android smartphones during the production shortfall, Evercore ISI analyst Amit Daryanani said in a note to clients late Thursday. Apple’s loyal customer base will simply wait, and upgrade their handsets when the company has inventory, he said.
On Nov. 6, Apple warned that Covid-19 restrictions at the factory, owned by Taiwan-based Foxconn, had “significantly reduced capacity” for the iPhone 14 Pro and Pro Max models. Those high-end models of the iPhone 14 series remain in high demand, the company said.
“We expect demand to be deferred rather than lost,” Daryanani said. “Assuming the plant operates at about 50% capacity for 7-14 days, this could push out about $3 billion of iPhone revenue from the December quarter to the March quarter.”
MacDailyNews Take: As we wrote last week, “These iPhone 14 Pro sales are merely deferred, not lost. Some may shift down to iPhone 14 and iPhone 14 Plus, but most buyers will simply wait for supply to catch up amidst strong demand.”
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