Apple drops as key analyst says iPhone 14 Pro shipments could be 20M less than expected - Seeking Alpha

Kevin Frayer

Apple (NASDAQ:AAPL) shares fell to a league debased connected Tuesday arsenic a cardinal expert said the company's iPhone 14 Pro shipments could beryllium importantly little than expected arsenic the tech elephantine deals with proviso concatenation risks retired of China.

TF International Securities expert Ming-Chi Kuo tweeted that iPhone 14 Pro and iPhone 14 Pro Max shipments could beryllium betwixt 15M and 20M little than expected.

"Significant downside risks to Apple & iPhone proviso concatenation owed to Zhengzhou iPhone works labour protests," Kuo added.

Apple (AAPL) shares fell astir 2% to $141.31 pursuing the tweet, sending the broader banal marketplace down on with it.

Kuo is not the lone expert to enactment the interaction of China's caller protests relating to its COVID-19 measures connected Apple (AAPL).

On Monday, concern steadfast Wedbush Securities said the play of protests successful China, caused by the country's draconian zero COVID-19 policy, whitethorn person impacted the tech giant's iPhone accumulation adjacent greater than estimated.

"The zero China Covid argumentation has been an implicit gut punch to Apple's proviso concatenation with the Foxconn protests successful Zhengzhou a achromatic oculus for some Apple and Foxconn," Wedbush Securities expert Dan Ives wrote successful a probe note.

Ives estimated Apple (AAPL) could spot an iPhone shortfall of 5% and possibly arsenic overmuch arsenic 10% depending connected however the adjacent fewer weeks spell successful China with regards to accumulation astatine the Foxconn works successful Zhengzhou and protests astir the country.

The expert added that galore Apple (AAPL) stores person seen "major" iPhone 14 Pro shortages by arsenic overmuch arsenic 40% compared to emblematic inventory levels and transportation dates person been pushed into aboriginal January successful immoderate cases.

On Tuesday, CNBC reported that the prohibition of question of residents successful Zhengzhou, wherever Foxconn's main iPhone works is based, was lifted starting midnight connected November 29 and "normal pandemic power measures volition beryllium implemented," citing the city's authoritative WeChat account.

Earlier this week, it was reported that Apple (AAPL) could spot a accumulation shortfall of as galore arsenic 6M iPhone 14 Pro units owed to unrest astatine Foxconn's Zhengzhou manufacturing plant.