Apple Says Its Q1 2023 Earnings Would Have Been Better If Not For iPhone 14 Pro, iPhone 14 Pro Max Supply Disruptions
Apple’s iPhone 14 Pro and iPhone 14 Pro Max were in low supply during the holiday quarter, which meant that the company lost billions in revenue. CEO Tim Cook later stated that had it not been for the continuous disruptions which prevented the two flagships from being in adequate supply, the earnings figure would have been different.
Supply disruption was caused at Foxconn’s primary assembling plant in China, with rising COVID-19 cases forcing the temporary closure of the facility
In 2022, Apple pushed out a press release , which in itself, was a rarity, informing customers that iPhone 14 Pro and iPhone 14 Pro Max supply would be low during the holiday season. This was due to Foxconn being forced to shut down its Zhengzhou plant in China due to rising COVID-19 cases. According to one report, Apple suffered a 20-million shipments drop because of this setback in the latest quarter.
Tim Cook revealed in the company’s Q1 2023 earnings call that if these disruptions were not in place, Apple would have generated substantially more revenue, with 9to5Mac reporting that the iPhone maker lost around $9 billion in earnings. Assuming that everything was running smoothly, Apple’s overall quarterly revenue for Q1 2023 would have been around $123 billion.
iPhone 14 Pro and iPhone 14 Pro Max supply might have improved, but it negatively affected Apple’s earnings
Fortunately, iPhone 14 Pro and iPhone 14 Pro Max supply has stabilized, and demand is persistent. The bad news is that Foxconn will likely not receive exclusivity status when mass assembling the iPhone 15 Pro and iPhone 15 Ultra for a launch later this year. Instead, Apple is said to divide orders between Foxconn, Pegatron, and Luxshare, though Foxconn is still expected to fulfill the majority of those orders.
Due to these setbacks and the fact that the U.S. government is placing trade restrictions on China, Apple has no choice but to take production out of the region, branching out to countries like India and Vietnam.
The post Apple Says Its Q1 2023 Earnings Would Have Been Better If Not For iPhone 14 Pro, iPhone 14 Pro Max Supply Disruptions by Omar Sohail appeared first on Wccftech .