Experts believe supply shortages may just lead to lower demand for the iPhone 14 as the economy weakens
Shipments of the recently launched iPhone 14 and iPhone 14 Pro Max are expected to be delayed due to the recent unrest at Apple’s factory in China. Reports suggest that supplies may fall short of market expectations by around 20 million units, leading to massive shortages in the markets.
Experts indicate that while these supply delays may cause a spike in demand for a while, they will decline as the economy strengthens.
China’s factory riots erupted due to COVID-19 restrictions. Later, they began to grow into protests against harsh working conditions and low wages. Not long ago, the world’s largest iPhone factory, operated by FOXCONN in Zhengzhou, had to temporarily close.
Market demand for the new iPhone 14 is between 80 and 85 million, but amid the COVID-related restrictions and protests, factories are expected to produce only around 70 million to 75 million units.
While the iPhone 14 shortage continues to affect market demand, it is also affecting Apple stock. Most recently, Apple shares fell about 2%, adding to the 4% they’ve already fallen this month.
Apple’s share price could take a hit due to forecasts of lower demand and lower sales this quarter, but many others who are optimistic about the future believe that the uncertainty will only increase demand and things will soon return to normal for the tech giant.