Analysts have adjusted the forecast for iPhone shipments this quarter downward - Apple will sell 8 million fewer smartphones

The lockdown at Foxconn's Zhengzhou plant will have a more significant impact on Apple's smartphone production than analysts originally anticipated.

Here's What We Know

The Zhengzhou factory is the world's largest manufacturing plant for the iPhone 14 Pro and Pro Max smartphones. Last week, even Apple itself acknowledged that quarantine restrictions would negatively affect production. At the same time, analysts predicted that shipments would decline by 3-5 million units.

A week later, experts adjusted the forecast downward. Thus, instead of the planned 82 million smartphones the company from Cupertino will be able to supply the market with only 74 million models of the iPhone 14 series.

However, during the first three months of calendar year 2023, Apple will be able to compensate for some of the losses. Analysts at J.P. Morgan suggest that in the first quarter of calendar year 2023, the American company will deliver 61 million smartphones to the market instead of 56 million, partially satisfying the pent-up demand, which will be formed by the end of this year.

Apple will have revenue of $121 billion in the current quarter, down 3 percent year-over-year. The California-based company's profits will be down 9%. For the next fiscal year, which Apple is ending in September, revenue will be $407 billion (-$2 billion) and each share will yield $6.25 (-$0.15) in earnings.

Source:Barron's