Apple Black Friday: Lost $8 billion

Foxconn of Hon Hai Group has always been Apple’s closest partner, and the high-end models of the Pro version are generally assembled exclusively by Foxconn.

Among them, the Zhengzhou Foxconn plant is the largest iPhone assembly plant, but recently due to some problems, production has been shut down and production has plummeted, causing Apple to suffer heavy losses.

A few days ago, Piper Sandle, a Wall Street investment bank, released a report predicting that due to the sharp drop in production capacity expected by Zhengzhou Foxconn recently due to the lockdown measures, it has now significantly lowered Apple’s quarterly revenue and iPhone sales cycle as of December, including the “Black Friday” Among them, the pessimistic forecast for iPhone sales.

And because it is expected that Foxconn’s shipments of the iPhone 14 series produced in November will decrease by about 9 million units compared to the original plan, especially the serious shortage of the Pro series, which will inevitably affect Apple’s revenue.

In a report to investors, the investment bank also lowered Apple’s revenue forecast for the first fiscal quarter by US$8 billion.

In addition, the report also mentioned that the affected factory is the main iPhone assembly factory, which has undertaken more than 50% of iPhone assembly orders. The capacity utilization rate of the factory in November is expected to drop to 50% or even lower.

Of course, not only Apple suffered losses in this incident, Foxconn also lost the exclusive OEM of the high-end version of the iPhone. At present, Apple has asked Pegatron to participate in the production of the iPhone 14 Pro series, which is expected to be shipped on a large scale in December.

At the same time, Foxconn will also lose its exclusive OEM in the follow-up, and Apple will no longer hand over to Foxconn for exclusive production of subsequent models such as the iPhone 15 Pro.