Due to the severe shortage of workers after the loosening of China's epidemic prevention measures, Apple's iPhone shipments in the first quarter of next year are expected to drop by 22% annually.

(Central News Agency)

Foxconn's Zhengzhou Plant's Occupancy Rate Difficult to Break Through 70%

[Reporter Fang Weijie/Taipei Report] Hon Hai (2317)’s Foxconn Zhengzhou factory has been affected by the epidemic since October. According to the latest report from the research organization TrendForce, the factory’s utilization rate is still difficult to break through 70%, and it is estimated that the 2022 iPhone 14 The shipment of the series is only 78.1 million units, and due to the severe shortage of workers after the loosening of the epidemic prevention measures in China, the shipment of Apple's iPhone series in the first quarter of next year is expected to decrease by 22% year-on-year.

TrendForce said that when the outbreak of the Foxconn Zhengzhou factory was underway, it coincided with the sprint period for Apple's new phone sales. Among them, the Pro series continued to increase the proportion of production due to the popularity of the market, which made Foxconn, the main assembly plant of the Pro series, feel the pressure. Even with Foxconn's Shenzhen factory supporting production, it is still too late.

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Foxconn has been the exclusive assembler of the Pro series for many years, but based on risk control, Apple originally intended to find other companies to join the ranks of production and assembly, and tried to produce the iPhone 14 Pro series. The Zhengzhou incident directly allowed China Luxshare Precision to enter the iPhone 15 Pro Max The assembly chain; however, Luxshare's iPhone foundry is still in China, while the Vietnamese factory is mainly based on Apple peripherals, and there is no iPhone production line plan yet.

In addition, due to concerns about geopolitics, Apple will also expand overseas production bases. In addition to the existing Indian production capacity that will double next year, starting in mid-2023, Vietnam factories are also planning to join production.

Non-middle class India and Vietnam are estimated to increase to 35%

In addition, considering the increasingly rigid relationship between the United States and China, Apple is bound to satisfy the entire North American sales market with "non-Chinese production". In the next few years, the proportion of Apple's iPhone production in India and Vietnam is estimated to climb to 30% of the total production capacity. % to 35% can be supported.

TrendForce further mentioned that due to the adjustment of China's epidemic prevention policy and the proximity of the Lunar New Year, China's supply chain has experienced a shortage of workers since mid-December, and it will continue to expand. Apple is facing a shortage of workers in the assembly industry chain. As well as the impact of global economic headwinds on sales performance, it is estimated that the shipments of the full range of iPhones in the first quarter of 2023 will be reduced to 47 million units, a 22% decline compared to the same period last year.

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