iPhone 14 Pro and iPhone 14 Pro Max shipments could drop by up to 20 million in the fourth quarter of 2022, according to new estimates

Apple’s supply chain was severely disrupted, and worst of all, it affected shipments of the iPhone 14 Pro and iPhone 14 Pro Max, which were in high demand. One analyst predicts that if things go as they are now, shipments of these two models could drop by as much as 20 million units in the fourth quarter of 2022.

Two of Apple’s suppliers have taken several iPhone 14 Pro and iPhone 14 Pro Max orders, but even that won’t be enough to fully offset the original shipments number for the year.

A new update from analyst Ming-Chi Kuo provides the above data, claiming that Apple may ship 15-20 million fewer units in the fourth quarter. Recently, the tech giant announced that its Zhengzhou assembly plant would see a temporary halt in production due to rising COVID-19 cases in the region. Due to this setback, iPhone 14 Pro and iPhone 14 Pro Max shipments will see a drop, and this incident could not have happened at a worse time for Apple since it is the holiday season.

In addition, the ongoing labor protests did not calm the situation, as Kuo stated that 70-75 million units are expected to be shipped in the fourth quarter of 2022. Earlier, Apple was expected to ship around 80-85 million units in the same period . To help improve the supply chain, Apple partners Pegatron and Luxshare have begun picking up 10 percent of iPhone 14 Pro and iPhone 14 Pro Max orders from Foxconn. Unfortunately, shipping is not expected until late December.

As a result, revenue from iPhone sales could drop significantly, with Kuo estimating that Apple could earn 20-30% less with lower iPhone 14 Pro and iPhone 14 Pro Max shipments. If things weren’t bad enough, the California-based giant earlier ordered its supply chain to reduce iPhone 14 and iPhone 14 Plus due to lack of demand and the already popular models could not be produced fast enough.

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To reduce supply chain risks, Apple is setting up assembly plants in Vietnam while ramping up iPhone production in India with the help of Foxconn. However, it may take a few years before the production of these two locations matches that of the facility in Zhengzhou.

news source: Ming Chi Kuo

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