Tag: factory
Kuo: iPhone 14 Pro Sales Are in Big Trouble Due to Foxconn Factory Protests
Kuo today said iPhone production at the factory in Zhengzhou has been “significantly affected” by the protests over unfavorable working conditions, leading him to cut his iPhone shipments forecast for the fourth quarter of 2022 by 20% to 70-75 million units, compared to a market consensus of 80-85 million units.
The average capacity utilization rate at the factory was only about 20% in November, and is only expected to improve to 30–40% in December, according to Kuo. He said Pegatron and Luxshare have each obtained about 10% of iPhone 14 Pro and 14 Pro Max orders from Foxconn, but said mass shipments will not be until late December at the earliest.
Kuo believes that the production issues could result in iPhone revenue being “significantly lower than the market consensus by 20–30% or more” this quarter.
Due to lengthy shipping delays and a recession, Kuo believes that most of the demand for iPhone 14 Pro models this quarter will simply “disappear” rather than be deferred, suggesting that many customers who would have purchased an iPhone 14 Pro right now will not return to order the device in January or later once supply improves.
iPhone 14 Pro models currently face at least a four-week shipping delay on Apple’s online store in the U.S. as the company struggles to maintain supply.
This article, “Kuo: iPhone 14 Pro Sales Are in Big Trouble Due to Foxconn Factory Protests” first appeared on MacRumors.com
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Violent Revolt at World’s Largest iPhone Factory in China Could Strain iPhone Supply
The troubles started last month when workers left the factory campus in Zhengzhou, the capital of the central province of Henan, due to Covid fears. Short on staff, bonuses were offered to workers to return. But protests broke out this week when the newly hired staff said management had reneged on their promises. The workers, who clashed with security officers wearing hazmat suits, were eventually offered cash to quit and leave.
Analysts said the woes facing Taiwan contract manufacturing firm Foxconn, a top Apple supplier which owns the facility, will also speed up the pace of diversification away from China to countries like India.
Daniel Ives, managing director of equity research at Wedbush Securities, told CNN Business that the ongoing production shutdown in Foxconn’s sprawling campus in the central Chinese city of Zhengzhou was an “albatross” for Apple. “Every week of this shutdown and unrest we estimate is costing Apple roughly $1 billion a week in lost iPhone sales. Now roughly 5% of iPhone 14 sales are likely off the table due to these brutal shutdowns in China,” he said.
Demand for iPhone 14 units during the Black Friday holiday weekend was much higher than supply and could cause major shortages leading into Christmas, Ives said, adding that the disruptions at Foxconn, which started in October, have been a major “gut punch” to Apple this quarter. In a note Friday, Ives said Black Friday store checks show major iPhone shortages across the board.
Ives’ note says he believes “many Apple Stores now have iPhone 14 Pro shortages … of up to 25%-30% below normal heading into a typical December.”
CNN also cites an analyst at TF International Securities who estimated on Twitter that more than 10% of global iPhone production capacity has been affected by the situation at the Zhengzhou campus.
Read more of this story at Slashdot.
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Jaffa Cakes and Mini Cheddars shortage fears as Jacob’s Biscuits factory workers walk out in ’24/7 indefinite strike’
WORKERS who make Jaffa Cakes and Mini Cheddars say they are going on strike “indefinitely” – raising fears of shortages on shop shelves.
Over 750 staff at Jacob’s Bakery factory will walk out today and continue “every single day” until bosses agree to negotiate better pay.
UK supply of Jaffa Cakes are set to crumble amid the strike action.[/caption]
Mini Cheddar bakers Jacob’s are owned by snack giant Pladis Global and produced at the same factory in Merseyside[/caption]
Eamon O’Hearn, National officer at The GMB union, who issued the threats, told The Mirror workers “are rightly angry”.
He added: “They put themselves on the line to keep the company going during the pandemic.
“Now they need some help to get them through the cost-of-living crisis, but it’s falling on deaf ears.”
The factory in Aintree, Merseyside, churns out a mouth watering 4,000 McVitie’s Jaffa Cakes every minute.
Most read in Money
But UK supply of the treat is now set to crumble amid the strike action.
A row over pay has raged for more than a year, with The GMB demanding a 10 percent pay hike for staff.
Such a rise would meet inflation which is running at 10.1 percent.
Jaffa Cake makers McVitie’s and Mini Cheddar bakers Jacob’s are owned by snack giant Pladis Global and produced at the same factory.
Read More on The Sun
But the firm said such a rise was unaffordable and offered 4.25 percent hike, rejected by staff who went crackers at the offer.
The Sun Online have approached Pladis Global for comment.
Workers will walk out at the baker’s factory in Aintree, Merseyside, from Monday[/caption]
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The iPhone 14 Pro and Pro Max will come with ‘longer wait times’ due to factory lockdown
Apple says to expect “longer wait times” if you plan on ordering an iPhone 14 Pro or 14 Pro Max. In a press release, the company explains that covid restrictions are affecting its iPhone factory in Zhengzhou, China, which is currently “operating at significantly reduced capacity.”
“We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models,” Apple says. “However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products.”
In October, a report from Reuters revealed that iPhone production could slump by at least 30 percent due to the strict covid restrictions affecting Foxconn, the China-based factory…