Apple may fall short of its production target for its flagship iPhone 14 Pro models by nearly 6 million units worldwide, after workers at the world's largest iPhone manufacturing plant in Zhengzhou, China, protested delayed bonus payments.
The exact size of the shortfall still remains unclear and will likely depend on the ability to hire enough workers for the iPhone assembly line.
Due to Covid-related disruptions at the Foxconn plant, Apple reduced its production target for the iPhone 14 by 3 million units, and that number has now been revised by double.
Due to the city's Covid control measures, workers at the Foxconn plant in Zhengzhou have been forced to live in a closed bubble, only being allowed to leave the factory floor to their dorm rooms.
While sales of the cheaper iPhone 14 and 14 Plus have slowed down, the pricier iPhone 14 Pro and Pro Max have continued to remain in strong demand in the U.S.
The company has diversified its manufacturing line by making some of its devices in India and Vietnam, but almost all of its flagship iPhone 14 Pro models are made in the Zhengzhou factory.
The report caused Apple's shares to fall in pre-market trading.
Forbes contacted Apple for a comment.
90,000,000. That was Apple's initial goal for the total number of devices it would make this year.
Apple warned of a delay in shipments of the Pro model of the iPhones because of China's anti- Covid measures. Customers trying to purchase the top-end models will face longer wait times due to the impact of Covid-19 restrictions. The wait time for an Apple product is currently one month. Same-day pickup is available at most Apple stores.
There were violent confrontations last week between security personnel and workers at the plant. Several workers said that if they stayed until March, they wouldn't get their promised bonuses. After hundreds of workers fled the factory campus in October, new recruits were lured by promises of higher wages and bonuses. The problems were caused by a "technical error" in the hiring process. The company offered a compensation of 10,000 to people who wanted to leave. Ten percent of the 200,000-strong workforce at iPhone City took up the offer from Foxconn.
Apple is going to lose 6 million people because of Tumult at China plant.
Apple shares were down in the pre market.
The world's largest Apple factory apologized after workers revolt.