Morgan Stanley cut its forecast of Apple iPhones shipment for the quarter ending December 2022 by another three million units after the firm was reportedly cutting shipment by six million units in November.
From the original forecast of 85 million units, the figure is now down to 75.5 million due to the unrest in China, according to Morgan Stanley.
Foxconns, Apple’s main supplier in China, was ruined by Covid-19 outbreak, following several engagements between protesters and security personnels last month. Workers had escaped the facility since October as the company proceeded to control the pandemic by isolating infected people.
The analysts of Morgan Stanley expected Apple to announce the revenue for the December quarter of $120 billion with a 3% impact coming from slower production.
“By now it’s well understood by investors that the Dec Q will be challenged due to iPhone supply shortages, and therefore the most important near-term debate is really how much of the lost demand from December is perishable vs. deferrable,” Morgan Stanley’s analysts wrote in a note.
Apple announced a revenue of $123 billion for the first fiscal quarter this year, representing an increase by 11% compared to 2021.
Additionally, analysts believed that the slow down in shipment will not alter demand for the iPhone 14 Pro/Pro Max that will remain solid.