Piper Sandler analysts on Thursday cut their estimates on revenue and iPhone sales Apple’s December quarter (fiscal Q123), as the Chinese Communist Party’s strict lockdowns and resultant unrest have negatively impacted production at the world’s biggest iPhone factory in Zhengzhou, China.
The brokerage now expects $119 billon in revenue for the current quarter from an earlier projection of $127.3 billion, with iPhone unit sales of about 74 million against 83 million previously expected.
“More than 50% of assembled iPhones come from Foxconn’s Zhengzhou plant. Majority of the disruptions took place in the month of November where utilization for the plant may have fallen to 50% or below,” the analysts said.
China’s manufacturing and services activities shrank further in November to seven-month lows, official data showed, stung by the country’s zero-COVID policy and rising infections that analysts said will hurt the economy well into 2023.
MacDailyNews Take: All of the analysts’ Apple estimates for this quarter, at least, will have to be lowered to reflect the CCP’s quixotic lockdowns in pursuit of its “Zero COVID” pipe dream.
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