Apple and Foxconn will catch up with the production of the iPhone 14 Pro series in December, but will still face a reduction of 9 million iPhones, according to a forecast by U.S. investment bank Piper Sandler.
Foxconn’s main iPhone factory is already significantly behind in the production of the iPhone 14 series. Investment bank Piper Sandler said it continues to be “confident that Apple remains a strong brand” overall. But the investment bank cut its revenue estimates for Apple by $8 billion for the December holiday quarter.
“We are lowering our estimates for Apple, primarily due to supply chain concerns around Foxconn’s main iPhone plant, from which more than 50 percent of iPhone assemblies come, and where utilization could fall to 50 percent or below this November.”
Foxconn India is also producing some iPhones, but the investment bank analyst doesn’t think that matters. “In our view, India still accounts for less than 5% of total iPhone 14 production and may only help to a limited extent at this point.”
The investment bank predicts that Apple “will try to catch up with December production,” but that the company also “will prioritize production of the iPhone 14 Pro series over other models.
In addition, Piper Sandler conducted a survey of U.S. teens that included questions about their plans to buy an iPhone, and October 2022 data showed that 88 percent of teens plan to buy an iPhone.
