On Tuesday, Apple stock closed at its lowest level since June 2021 amid a sell-off in major tech stocks, heightened by concerns about iPhone shipments during the important holiday period.
Shares fell 1.4% for a third consecutive negative session, Bloomberg reports, despite the company still having its best performance in 2022 with a 27% drop.
Recent shutdowns at a major Foxconn factory in China have resulted in a supply shortage for Apple’s flagship product. The Zhengzhou facility, also called iPhone City, was forced to shut down operations in October following the COVID-19 outbreak in line with China’s strict “zero-covid” policy. Some Foxconn workers were quarantined at the plant with limited supplies of provisions: they began to flee the territory, and subsequently went on picket lines.
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It is expected that due to the protests, the company will lose almost 6 million iPhone 14 Pro.
Foxconn to pay workers $1,400 to end protests and lay off iPhone City in Zhengzhou
On Tuesday, JPMorgan wrote that iPhone supply is “improving and slowly approaching parity with demand,” although it added that Apple is usually “much further along in achieving parity between iPhone supply and demand” at this time of year. Due to this issue, Apple’s results in the December quarter are expected to be lower than expected.
Previously, Nikkei Asia also reported that Apple will manufacture some of its MacBooks in Vietnam starting in 2023. The company plans to move its production outside of China to avoid trade tensions between the Asian country and the United States, as well as supply chain disruptions associated with restrictions due to Covid-19.
Media: Apple will begin production of MacBook in Vietnam in 2023