- Analyst at Piper Sandler cut their revenue and iPhone sales estimates for Apple Inc’s (NASDAQ:AAPL) December quarter, as Beijing’s strict lockdowns hamper production at the most significant iPhone factory in Zhengzhou, China.
- The analysts expect $119 billion in revenue for the current quarter, down from the prior $127.3 billion, with iPhone unit sales of about 74 million against 83 million previously expected, Reuters reports.
- More than 50% of assembled iPhones come from Hon Hai Precision Industry Co Ltd (OTC:HNHPF) Foxconn’s Zhengzhou plant.
- The majority of the disruptions took place in November, where utilization for the plant may have fallen to 50% or below, the analysts said.
- Also Read: Bummer For Premium iPhone Lovers This Holiday Season – Best Buy Warns Against Supply Crisis
- China’s manufacturing and services activities plunged further in November to seven-month lows, official data showed, stung by the country’s zero-COVID policy and rising infections that analysts said will hurt the economy well into 2023.
- Production woes were aggravated for Apple by large-scale labor unrest in China, where Foxconn workers clashed with security personnel in Zhengzhou.
- The analysts said Apple might prioritize iPhone 14 Pro production over other models, given the higher average selling price for the product.
- Price Action: AAPL shares traded higher by 0.05% at $148.10 on the last check Thursday.
Jim Cramer Writes Off Entire Telco, Wireless Industry: ‘It’s Such A Shame’
On CNBC’s "Mad Money Lightning Round," Jim Cramer said Carpenter Technology Corporation (NYSE: CRS) is a "very, very good company, Philadelphia-area company.
