Apple's China crisis: shortfall of six million iPhone Pros

key manufacturing hub of Zhengzhou is likely to result in a production shortfall of close to six million iPhone Pro units this year, according to a person familiar with assembly operations.

The Zhengzhou campus has been wracked by lockdowns and worker unrest for weeks after Covid infections left Foxconn and the local government struggling to contain the outbreak. Thousands of staff fled in October after chronic food shortages, only to be replaced by new employees who rebelled against pay and quarantine practices.The Foxconn facility produces the vast majority of iPhone 14 Pro and Pro Max devices, Apple’s most in-demand handsets this year.

Morgan Stanley analysts earlier this month estimated the iPhone Pro model shortfall at about six million units this year, though that was before the outbreak of violence in Zhengzhou last week.The tumult in iPhone City, as the Zhengzhou complex is known, is a stark reminder of the risks for Apple of its vast supply chain in China.

The departure of new workers is less of a factor in production than the quarantines imposed on existing employees because of their experience and skill, another person familiar with assembly operations said. Foxconn is actively recruiting additional employees, with help from government officials. The Taiwanese company, China’s largest private sector employer, has years of experience hiring assembly personnel by the tens of thousands, particularly during peak season.

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