UBS Cuts IPhone Forecast by 16 Million on Covid, Demand Issues
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Apple Inc.’s iPhone 14 generation may fall 16 million units shy of expectations this year, as China’s Covid Zero policy roils its key Zhengzhou plant and entry-level models face weak demand, according to UBS.
UBS analysts slashed their forecast of total iPhone 14 production to 76 million from 92 million units for the second half of 2022, a 20% fall from 2021. They attributed the lower expectations to both the manufacturing disruption faced by Foxconn, also known as Hon Hai Precision Industry Co., and softening demand for lower-end iPhone 14 models. It’s one of the most bearish estimates about the current quarter and comes at a time of uncertainty about China’s potential relaxation of virus lockdown measures.