Protests in China iPhone holi-daze
Many holiday shoppers looking to snap up the latest Apple iPhone will have to wait until next year because of shortages caused by violent protests at its main plant in China.
The protests in Zhengzhou, sparked by low pay at the Taiwan-owned Foxconn plant and China’s strict COVID-19 lockdown measures, have resulted in nearly 6 million fewer iPhone Pros, according to experts.
“Apple is essentially caught in the crossfire heading into the all-important Christmas time period,” Wedbush analyst Dan Ives said in a note to clients. “We estimate that Apple now has significant iPhone shortages that could take off roughly at least 5% of units in the quarter and potentially up to 10% depending on the next few weeks in China around Foxconn production and protests.”
Production of iPhones could be hampered even further if China’s COVID lockdowns continue in the weeks ahead, a source familiar with the matter told Bloomberg. Foxconn’s plant is Apple’s key source for the premium iPhone 14 Pro and Pro Max models.
Apple shares fell 3.69 points to $144.22 (2.63%) Monday on the news of the iPhone shortfall. The company’s stock is down about 20% so far this year.
China’s controversial “COVID Zero” policy is already causing “major iPhone 14 Pro shortages” at Apple stores heading into December, Ives said. He added that Apple is “extremely limited in their options for holiday season” due to the production standstill.
A source told Bloomberg that Apple and Foxconn expect to make up for the losses in 2023.
Apple didn’t respond to a request for comment.
Protests against China’s policies have spread throughout the country, with students in Beijing among those who took to the streets to demand an end to lockdowns.
The Zhengzhou plant has been a site of continued unrest in recent months, with thousands of workers fleeing the facility last month due to alleged unsafe working conditions. Replacement workers have pushed for better pay and an end to restrictive quarantine measures.