Adam Kos If you read us more regularly, you must have noticed articles about the situation surrounding the production of the iPhone 14 Pro. They aren't and they won't be anytime soon. But how much does it really cost Apple, and what impact does it have on the numbers of iPhones sold?
We wrote about the situation <a href="https://cdn.shopify.com/s/files/1/1932/8043/files/200721_ODSTOUPENI_BEZ_UDANI_DUVODU__EN.pdf?v=1595428404" data-gt-href-en="https://en.notsofunnyany.com/">here</a> or <a href="https://cdn.shopify.com/s/files/1/1932/8043/files/200721_ODSTOUPENI_BEZ_UDANI_DUVODU__EN.pdf?v=1595428404" data-gt-href-en="https://en.notsofunnyany.com/">here</a>, so there is no need to elaborate further. In short, let's just remind you that China was going through lockdowns, which limited the production of the iPhone 14 Pro and 14 Pro Max, when in addition, employees in Foxconn factories rioted with regard to working conditions and promised rewards. This seems to have been put to rest, but making up for the loss will not be so easy as it will spill over into the new year.
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Minus 9 million
Information has leaked before that if Apple has nothing to sell, then of course it has no way to make money. There is interest from customers, but they cannot give their money to Apple because it has nothing to offer them in return (iPhone 14 Pro). Then, of course, there is the margin from each unit sold, which is a profit for Apple. It is supposed to be one billion dollars a week.
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According to CNBC analysts now expect Apple to sell 9 million fewer iPhones in the Christmas season than originally estimated. In the context of the fact that the Czech Republic has less than 11 million inhabitants, this is a huge number. The original plans were to sell 85 million units, but for the aforementioned reasons, this number is expected to drop to some 75,5 million iPhones sold in fiscal Q1 2023, the last calendar quarter of 2022.
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Even though there is steady demand for the iPhone 14 Pro and 14 Pro Max, Q1 2023 won't save it. Because of this, Apple is also expected to report revenue of "only" around $120 billion for the current quarter. The problem is that Apple's sales grow regularly, especially during the Christmas period, which is the strongest of the year, which is not happening right now. They should even drop by 3%, just because of the slowdown in the production of the latest iPhones. Of course, the shares will also fall with this, which have been falling since August 17th, when even the new iPhones or Apple Watch had no significant effect on their value.
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One good news and one bad news
There are then two scenarios where one is positive for Apple and the other is a nightmare. Those who can't buy iPhones now (not because they shouldn't, but because they aren't) can just wait and get them in late January/February when the situation improves. This will then be reflected in sales in Q2 2023, and it could, on the contrary, mean record sales for Apple in this very quarter.
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But the downside is that many may say that if they've stuck it out until now, they'll wait for the iPhone 15, or even worse, break the stick over Apple and go to the competition. It is Samsung that is planning to introduce its flagship Galaxy S23 series at the turn of January and February, which could theoretically take a bite out of Apple's sales pie. And as we know, Samsung will want to make the most of the situation and will try to offer its top models on a golden platter.
How are you doing? Do you already own the new iPhones 14 Pro and 14 Pro Max, have you ordered them, are you waiting for the order, or have you given up on them altogether? Tell us in the comments.
