Foxconn Unrest to Further Drag Down Apple's (NASDAQ:AAPL) iPhone Shipments - TipRanks

The chaos astatine Foxconn’s Zhengzhou, China works is expected to deed Apple’s (NASDAQ:AAPL) iPhone November shipments by implicit 30%, up from the erstwhile estimation of up to 30%, arsenic per a Reuters report that cited a idiosyncratic with nonstop cognition of the matter. Production astatine Foxconn, which contributes astir 70% of iPhone’s planetary shipments, is getting impacted by the departure of further workers astatine the Zhengzhou plant.   

The Zhengzhou Foxconn plant, which was already facing COVID-related disruptions, was further wounded by convulsive protests by workers connected Wednesday owed to delayed bonus payments. Employees had earlier expressed their disappointment implicit the moving conditions astatine the works amid stringent COVID restrictions.

Foxconn connected Thursday offered 10,000 yuan ($1,400) to its disgruntled workers, mostly caller hires, to permission the company. Over 20,000 workers are estimated to person taken the wealth and near the plant. Foxconn antecedently expected the Zhengzhou mill to resume afloat accumulation by November end. However, arsenic per Reuters’ source, this extremity mightiness not beryllium met.

The interaction of Foxconn connected Apple’s income reinforces the request for the tech elephantine to diversify its proviso chain. The disruption astatine Foxconn could importantly interaction Apple’s income successful the important vacation quarter.

What is the Forecast for Apple Stock?

The Strong Buy statement standing for Apple banal is based connected 24 Buys and 4 Holds. The average Apple terms people of $180.48 suggests 19.5% upside potential. Shares person declined astir 15% year-to-date.

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