The escalation happened in November, leading to wait times of 34 days for some Pro models in the U.S. and 36 days in China. One of the biggest China-based Foxconn factories, the Zhengzhou factory, made news after workers resorted to violence to complain about pay and COVID.
The UBS analysts think, however, that wait times for Pro models have steadily gotten better, based on what Apple has said about the situation. While the holiday sales for the iPhone may have been impacted, the silver lining is that strong currencies against a weaker dollar may have helped Apple’s overall financial situation.
UBS forecasts that Apple will have shipped 79 million iPhones in Q1 2023, which is a little below the consensus of 80 million but far higher than the lowest estimate of 74 million. There’s another positive expectation when it comes to year-on-year sales, despite the 3% decline that UBS predicts.
According to UBS, Apple will manage to ship 232 million iPhones in 2023, which is a little short of the consensus of 238 million but still not too bad given the financial climate. The problems in the Zhengzhou factory and the longer wait times for iPhone Pro models have had little impact on Apple’s overall distribution diversity across its portfolio of models. Roughly 56% of iPhones sold in the U.S. in the December quarter were Pro models.
UBS estimates that if there is a 5 million iPhone shortfall compared to the forecast, it would result in a $1.7 billion loss in pre-tax income and a $0.10 decrease in earnings per share (EPS), based on an ASP of approximately $850 and a 40% contribution margin for the iPhone business. The expected revenue and EPS are set at $120.3 billion and $1.93, respectively, which are lower than the consensus estimates of $122.9 billion and $1.96.
Read original article here
Denial of responsibility! Gulehri.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – firstname.lastname@example.org. The content will be deleted within 24 hours.