China’s COVID crackdown cost Apple $6 billion in iPhone sales last quarter
Did Foxconn just hire a familiar-looking assembly line worker?
When the Chinese government declared a crackdown on COVID, a large number of Foxconn employees managed to leave the campus as they weren’t too keen on the rules imposed on Zhengzhou by the authorities. Foxconn also made things less fun by demanding that workers eat in their own dormitories instead of the communal dining room.
The shortage of iPhone 14 Pro and iPhone 14 Pro Max models has been resolved
The shortage of iPhone 14 Pro series models cost Apple no less than $6 billion last quarter. Here’s how you can figure this out. The difference between the revenue generated by the iPhone during last year’s fiscal first quarter and this year’s fiscal first quarter is $5.85 billion, close enough to $6 billion for this example. Cook said that if not for the problems at the Zhengzhou Foxconn plant, iPhone revenue would have topped last year’s figure which was $6 billion more than this year’s tally.
“I don’t have the exact market shares in front of me but I think you would see that from a market share point of view that we grew around the world, last quarter, despite iPhone challenges we had on the supply side,” said the executive. Ah! That clears it up. What Mr. Cook is saying is that the rest of the smartphone market worldwide performed worse last quarter than the iPhone did. As a result, Apple’s market share actually rose during the quarter.
Apple also announced that it now has over 2 billion active devices which is up from the 1.8 billion it had last year. The higher this number goes, the more important the Apple Services business segment becomes to the company because it each new active device is potentially a new customer for Apple’s subscription services.
