Hon Hai's Foxconn has long been Apple's closest partner and typically assembles the Pro's high-end models exclusively.
Among them, the Foxconn plant in Zhengzhou is the largest iPhone assembly plant. However, due to some problems recently, the production has been suspended and reduced, which has caused heavy losses for Apple.
Recently, Wall Street investment bank Piper Sandle released a report forecast, due to Zhengzhou Foxconn recently due to lockdown measures to reduce production expectations, has now significantly lower Apple's December quarter revenue and iPhone sales cycle, including the iPhone sales cycle. Black Friday. And a downbeat forecast for iPhone sales.
And with Foxconn expected to ship about 9 million fewer iPhone 14 models in November than originally planned, and the Pro series in particular out of stock, this is bound to hurt Apple's revenue.
In a note to investors, the investment bank also cut its revenue forecast for Apple's fiscal first quarter by $8 billion.
In addition, the report said that the affected factory, which is the main iPhone assembly plant, handles more than 50 percent of iPhone assembly orders, and the factory's capacity utilization rate in November is expected to fall to 50 percent or lower.
Apple is not the only one to suffer. Foxconn has also lost its exclusive contract to manufacture high-end versions of the iPhone,Apple has asked Pegatron to work on the iPhone 14 Pro line, which is expected to ship in large numbers in December.
At the same time, Foxconn will also lose the exclusive contract manufacturing, iPhone 15 Pro and other subsequent models, Apple will not be assigned to Foxconn for exclusive production.