An Apple employee hands over Apple iPhone.
Sean Gallup/Getty Images
China’s manufacturing problems in the wake of strict lockdowns to prevent the spread of Covid-19 may hit output of Apple ’s next iPhone worse than the industry expects, JPMorgan said.
Analysts led by William Yang said they have a more “conservative view” on build estimates than what the supply chain expects. They see the mass production of the iPhone 14 and 14 Pro starting in early August, high-end iPhone 14 Pro Max beginning in late August and the ramp up of the iPhone 14 Max to be in early to mid-September.
Bloomberg reported earlier this week that Apple (ticker: AAPL) is asking suppliers to make about 220 million iPhones this year, compared with expectations for the company to increase output to about 240 million phones.
JPMorgan predicts fewer iPhone 14 units will be built in 2022 than iPhone 13 models made last year, “considering macro uncertainties and potential retail price increases given higher semiconductor costs and USD strength.”
For the iPhone 14 series, JPMorgan forecasts 87 million units to be produced in the second half of 2022. In the second half of 2021, 90 million iPhone 13 units were built, according to JPMorgan.
“This projection is to reflect smartphone demand weakness” and cost pressures, JPMorgan said.
Shares of Apple were 3% higher on Friday to $148.11. The stock has fallen 16.6% in 2022.
Write to Angela Palumbo at [email protected]
