U.S. markets close in 1 hour 34 minutes
  • S&P 500

    4,132.53
    -47.23 (-1.13%)
     
  • Dow 30

    33,871.59
    -182.35 (-0.54%)
     
  • Nasdaq

    12,012.97
    -187.85 (-1.54%)
     
  • Russell 2000

    1,986.01
    -15.21 (-0.76%)
     
  • Crude Oil

    73.54
    -2.34 (-3.08%)
     
  • Gold

    1,877.80
    -53.00 (-2.74%)
     
  • Silver

    22.43
    -1.18 (-5.02%)
     
  • EUR/USD

    1.0810
    -0.0101 (-0.93%)
     
  • 10-Yr Bond

    3.5280
    +0.1320 (+3.89%)
     
  • GBP/USD

    1.2056
    -0.0173 (-1.41%)
     
  • USD/JPY

    131.1170
    +2.5130 (+1.95%)
     
  • BTC-USD

    23,403.26
    -419.09 (-1.76%)
     
  • CMC Crypto 200

    535.82
    -1.04 (-0.19%)
     
  • FTSE 100

    7,901.80
    +81.64 (+1.04%)
     
  • Nikkei 225

    27,509.46
    +107.41 (+0.39%)
     

Apple iPhone Likely To Miss Consensus By 16M As China's Macros Weigh, Analysts Say

  • UBS believes Apple Inc's (NASDAQ: AAPL) iPhone 14 generation may miss expectations by 16 million units this year, as China's Covid Zero policy takes a toll on its essential Zhengzhou plant and entry-level models face weak demand.

  • UBS analysts slashed their total iPhone 14 production forecast to 76 million from 92 million units for the second half of 2022, a 20% fall from 2021, Bloomberg reported.

  • They attributed the lower expectations to the manufacturing disruption faced by Foxconn, also known as Hon Hai Precision Industry Co Ltd (OTC: HNHPF), and softening demand for lower-end iPhone 14 models.

  • "The speed with which Apple and Hon Hai can resolve the challenges at Zhengzhou is key to 2022's fourth quarter and 2023's first quarter volume," the analysts wrote.

  • Foxconn's Zhengzhou campus closed-loop operation hampered efforts to compensate for lost assembly time.

  • The Foxconn facility at Zhengzhou produces most iPhone 14 Pro and Pro Max devices.

  • Turmoil at the Zhengzhou plant will likely lead to a production shortfall of 6 million iPhone Pro units.

  • Apple could also ask assemblers like Pegatron Corp (OTC: PGTRF) and Luxshare Precision Industry Co, which typically focus on lower-end iPhone models, to produce more premium models to meet holiday season demand, UBS said.

  • If such a shift happens, Foxconn's iPhone assembly share could fall from 70%-to-75% this year to 65%-to-70% in 2023, the analysts added.

  • Price Action: AAPL shares traded lower by 0.11% at $148.15 premarket on the last check Friday.

Latest Ratings for AAPL

Date

Firm

Action

From

To

Mar 2022

Barclays

Maintains

Equal-Weight

Feb 2022

Tigress Financial

Maintains

Strong Buy

Jan 2022

Credit Suisse

Maintains

Neutral

View More Analyst Ratings for AAPL

View the Latest Analyst Ratings

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.