Apple Inc ( NASDAQ:AAPL )
Apple stock ( NASDAQ:AAPL ), even though the news is positive for the tech giant and those interested in purchasing a new phone, could still be negatively impacted if earnings slow down as a result of the production issues.
The iPhone plant in Zhenghzhou, which Apple supplier Foxconn owns, has recently been beset with problems, including lockdowns related to Covid-19 and worker protests. The production of the iPhone 14 Pro and the delivery times have both suffered due to this. Less than two weeks have passed since then. the estimated delivery times of the more expensive iPhone 14 models were given for the following year.
Nevertheless, the Zhengzhou facility lifted its lockdown restrictions at the end of November, and ever since then, the assembly plant has reported that progress is being made toward resuming entire operations.
In a recent research note, David Vogt, an analyst at UBS, stated that wait times across most markets, including the United States and China, have improved relative to both the previous week and two weeks ago, “indicating the supply chain disruptions are easing on the margin.” This was stated in reference to the fact that the wait times had improved in comparison to both of those time periods.
“If the rate of improvement continues in the U.S., it might be possible for consumers to receive a new iPhone 14 Pro or Pro Max in time for Christmas,” Vogt wrote. However, the analyst added that even though the trend was welcome news, he believes To determine underlying demand, The market “is probably going to look at the December and March quarters as a whole relative to last year.”
Vogt predicted that the disruptions in China would likely result in a shortage of iPhones for the December quarter. iPhone sales contributed $42.6 billion to the total revenue of $90.1 billion the company brought in during its most recent quarter.
Reports indicate that Apple is exploring the possibility of relocating some of its manufacturing operations outside of Chi...
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