Published on November 3, 2023, 5:29 pm
Image source: Fox News
Analyst Ming-Chi Kuo has stated that Apple’s iPhone shipments in China have declined more than anticipated. Kuo attributed this decline partially to issues at Foxconn’s Zhenghzhou factory, which produces iPhones. The riot that occurred at the factory in 2022, where workers protested over wages and labor conditions, was a contributing factor. The riots were related to the alleged delay of bonus payments and dissatisfaction with the effectiveness of anti-COVID measures.
The shutdown of the factory caused disruptions in Apple’s supply chain, resulting in 12 million fewer shipments of iPhone 14 Pro & Pro Max units and a lower revenue baseline for the fourth quarter of 2022. Despite Apple predicting similar revenue for the fourth quarter of 2023 compared to the previous year, there was actually a decline in revenue, with $89.5 billion reported compared to $90.1 billion for Q4 2022. Kuo believes this suggests weaker momentum for Apple in Q4 due to a decline in iPhone demand in the Chinese market.
Looking ahead to 2024, Kuo anticipates a continued downward trend for iPhones in China, attributing it to a structural change caused by Huawei’s return. Chinese smartphone makers such as Huawei and Honor are providing increased competition for Apple, according to analysis from Counterpoint Research.
There were initial reports indicating weaker demand for the iPhone 15 compared to its predecessor in China. Counterpoint and Jeffries both cited increased competition from Huawei and its Mate 60 Pro model as well as economic struggles following COVID as reasons for lower-than-anticipated sales of the iPhone 15.
While global smartphone revenues remained flat year-over-year, Apple maintained its position as market leader with record Q3 revenue and share, with expectations that the iPhone 15 will perform even better this quarter.
In other news from Apple, CEO Tim Cook highlighted their best-ever revenues from Services and quarterly records for iPhone revenues in their latest earnings report. Additionally, there were reports of Apple’s scrapped plan to introduce Android support for the Apple Watch due to concerns about its impact on iPhone sales.
Apple has also activated an extended return policy in anticipation of the 2023 holiday shopping season, covering purchases of products like the Apple Watch, iPhone, iPad, and Mac.
Apple TV+ continues to garner success with its children and family programming, earning over two dozen Emmy awards for shows such as “Helpsters,” “Frog and Toad,” and “Pinecone and Pony.” Furthermore, Apple is expanding its retail presence in China with the opening of Apple MixC Wenzhou, marking its entrance into the vibrant city of Wenzhou.
These recent developments showcase both challenges and achievements for Apple in various aspects of their business. Despite facing increased competition from Chinese smartphone makers and experiencing a decline in iPhone shipments in China, they continue to see success in other areas such as Services revenue and their digital streaming platform – Apple TV+.
Original article posted by Fox News