Estimated iPhone 14 shipments lowered to 78.1 million units - evertiq.com

The outbreak successful Zhengzhou was astatine its worst conscionable arsenic Apple was trying to ramp up income of the caller iPhone models for this twelvemonth (i.e., the iPhone 14 series) to a peak. Furthermore, the caller Pro models person been successful precocious demand, truthful Apple has kept raising their stock successful the wide iPhone production. Hence, Foxconn arsenic the sole assembler of the caller Pro models has been nether important strain. Besides the Zhengzhou base, Foxconn is besides drafting enactment from its different large basal located successful the Chinese metropolis of Shenzhen. However, this determination inactive not capable to bring an contiguous alleviation to the existent capableness crunch. Given this situation, TrendForce has corrected down its projection connected the full shipments of each iPhone 14 models successful 2022 to 78.1 cardinal units.

Foxconn Is No Longer Sole Assembler for iPhone Pro Models arsenic Apple Has Tapped Luxshare for Production of iPhone 15 Pro Max

For years, Apple has outsourced the assembly of iPhone Pro models exclusively to Foxconn. However, owed to the imperative of hazard management, getting a 2nd EMS supplier for this task has been nether information for immoderate clip arsenic well. Apple is reportedly to person made the program of utilizing different EMS supplier too Foxconn for the assembly of the iPhone 14 Pro models successful adjacent future. This volition service arsenic a proceedings tally for diversifying its partners and locations for iPhone production. Moreover, owed to the caller outbreak astatine Zhengzhou, Apple has besides made determination of employing Luxshare arsenic 1 of the assemblers for the upcoming iPhone 15 Pro Max. However, Luxshare’s lone iPhone assembly works is located successful China. In Vietnam, Luxshare has a works for assembling Apple-related accessories, but the institution presently has nary program for mounting up a caller iPhone accumulation enactment there.

Efforts Are Taking Place successful Supply Chain to Rapidly Raise Portion of Device Production Based successful India and Vietnam

Because of the increasing interest astir geopolitical tensions, Apple intends to importantly grow the fig overseas accumulation sites that are extracurricular China. For 2023, Apple aims to treble its instrumentality accumulation capableness successful India and person factories successful Vietnam commencement making contributions by the mediate of the year. In presumption of the escalating commercialized quality betwixt China and the US, Apple volition beryllium compelled to trust lone connected accumulation sites extracurricular China to conscionable the income request of the North American market. In bid to recognize this, TrendForce believes that astatine slightest 30~35% of Apple’s full instrumentality accumulation capableness volition person to beryllium located successful Vietnam and India. Therefore, Apple volition request to support raising the stock of instrumentality accumulation based successful these 2 countries implicit the adjacent respective years.

China Is Experiencing Labor Shortage After Loosening Pandemic-Related Restrictions, truthful iPhone Shipments Are Forecasted to Drop by More Than 20% YoY for 1Q23

TrendForce further points retired that China’s proviso concatenation has started to acquisition a labour shortage this December. This has to bash with the Chinese authorities making a important alteration to its argumentation for addressing COVID-19 outbreaks and the wide mentation for the impending Lunar New Year holiday. There are besides signs that the labour shortage could get worse. Hence, connected apical of the assorted headwinds that are affecting the planetary economy, Apple is again facing a deficiency of manpower that constrains its instrumentality production. TrendForce has corrected down its forecast of iPhone shipments (including each existing models) successful 1Q23 to 47 cardinal units, with the corresponding YoY diminution coming to 22%.

For much accusation sojourn TrendForce.