New Delhi : Covid-led restrictions in China are likely to impact global shipments of iPhone 14 Pro and iPhone 14 Pro Max, but will not affect Apple’s performance in India, given that older Apple devices drive their sales here , and the December quarter generally sees less demand. , analysts said.
Apple said on Monday that fresh Covid-19 restrictions in Zhengzhou, which houses Foxconn’s iPhone manufacturing facility, will disrupt the supply of premium iPhone models.
Analysts said this is likely to impact Apple’s profits in markets such as North America and Europe, where December is prime buying season. In India, however, the shopping season ends in September and October.
TechARC Chief Analyst and Founder Faisal Kawoosa said that the latest iPhones are never the best selling models in India. “Whatever Apple is building in India, it should meet local demand in the December quarter. The consumption period for the iPhone has expired. Europe and the US are worrying for Apple because of Christmas shopping.”
Zhengzhou isn’t the only manufacturing hub in China that faces sanctions. The rise in Covid-19 cases and China’s zero-tolerance policy led to similar restrictions in Guangzhou and Shenzhen from October.
According to Tarun Pathak, director of research at Counterpoint Research, if the restrictions extend beyond a period of four weeks, the iPhones components used for assembling in India could be affected. “Sensors, integrated circuits and other components are likely to be affected.” Pathak said shipments of iPhones are expected to decline by less than 5% in the December quarter.
Also, the supply crunch may not amount to a loss for Apple as demand in India is likely to be pushed into the next quarter. Apple began initial production of iPhone 14 models in India at Foxconn’s Sriperumbudur unit in Tamil Nadu and Pegatron’s in Chennai. factory. “Only the iPhone 14, iPhone 13 and iPhone 14 Plus are being assembled here. Barring the iPhone 13, demand is low as the buying season is almost over,” said Navendra Singh, Device Research, IDC India, South Asia and Associate Vice President, Australia and New Zealand.
Mint reported in April that Apple could surpass last year’s iPhone shipments in India in 2022. According to IDC, in 2021, Apple shipped 4.8 million iPhones in the country, which is likely to increase to 5.5-6 million.
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