There are quite a few people who
pre-ordered the iPhone 14 Pro Series and are still waiting, right?
The problem is that this
backlog is not expected to be easily resolved.
For the iPhone 14 Pro series,
it takes about 4 weeks from order to receipt.
The biggest reason for this backlog
is that production is not running smoothly.
According to Morgan Stanley, China's zero
corona policy and the resulting disturbance at the Zhengzhou plant
are expected to reduce shipments by 9 million units in November and December compared to the previous year.
iPhone shipments in the first quarter of this fiscal year
were expected to be 85 million units,
but the actual number is expected to decrease by 9.5 million units to 75.5 million units.
Foxconn's Zhengzhou plant in China, which is the key base for Apple's iPhone
production, employs 200,000 people and accounts for 80% of the iPhone 14.
85% of the iPhone 14 Pro is made here at the Zhengzhou factory,
which is Apple's key production base.
Unrest at this key plant is not limited
to the fact that it was operated in a closed-loop manner based on a zero-corona policy.
The channel said that it is likely that there will be problems with the production
and sales of the iPhone 14 series
even before the release of the iPhone 14 series.
As I said at the time, the biggest problem
was that factories in China were often shut down
in the aftermath of the ongoing pendemic, and last summer,
some areas in Sichuan Province had to shut down factories due to power shortages
caused by the worst heat wave in 60 years. I was even tempted to stop.
Foxconn's Zhengzhou factory flexibly increases its staff
from 200,000 in normal times to 300,000 to 350,000 from October to December,
including interns and temporary workers,
in line with iPhone production.
Since last summer, we have posted jobs
with special bonuses for iPhone manufacturing.
However, the people who gathered with difficulty, more than 20,000 employees went home at the end of October,
when production should be in full swing,
due to too strong quarantine measures and poor accommodation conditions.
The problem is that production was stopped for several days
as many employees left the production line in mid-November
because the bonuses promised by the remaining staff were not paid.
Another additional bonus was promised
to bring back the departed personnel,
but it is said that a significant number of personnel left the factory
until the end of the month.
Accordingly, Apple has taken measures
to move the iPhone production line to India,
but the backlog of the iPhone 14 Pro series is expected to continue considerably.
This is because, in order to increase the average selling price of the iPhone,
the pro model is equipped with a large number of innovative materials
such as a 48MP camera and a dynamic island,
including satellite communication functions, and the phenomenon
of being driven into pro series orders is prominent.
Accordingly, Apple is facing a happy
but unfortunate reality that orders are flooded,
but they cannot be sent because there is no product. The biggest problem here is timing.
Apple uses a fiscal year policy of making the first quarter from October to December
so that the start of each year can be reported in the black
through the peak sales period
with Thanksgiving and Christmas. is already expected to disappoint.
This news affects Wall Street and continues to affect Apple's stock price.
If this backlog phenomenon is not quickly resolved,
more and more people cancel orders for the iPhone
14 Pro, and order cancellations eventually become the owners of the iPhone
15 Pro series. will lead
The iPhone 15 is the first 5G phone of the iPhone and the first iPhone
in which users of the iPhone 12 series,
which had a large number of iPhone X series carrier contract customers,
will be able to renew the contract.
It is expected that it will account for higher demand than ever before.
However, the problem is that even if the Chinese factory is normalized,
since Apple is dividing production into India, there is plenty of room for various problems,
including initial yield problems, to arise again.
Apple is facing various crises right now.
The prospect of economic recession in 2023
and subsequent large-scale job cuts, unrest at factories in China, delayed release of Apple Glass,
which was scheduled to be released in the first half,
delayed release of Apple Car, continued strong dollar, iPhone USB-C port obligation, etc.
Internal and external Apple, which is facing a considerable crisis due to
Attention is focusing on whether it will handle all of these backlogged iPhone
14 Pro waiters and huge potential customers who want to upgrade from the iPhone
12 series to the 15.
Thanks for watching the video.
It was route nine in Boston.