Due to persistent supply chain problems, November was the worst month for Apple in terms of iPhone shipments, but December showed signs of stabilization, according to J.P. Morgan.
iPhone shipments declined 58% Y-o-Y in November
Since the launch of the iPhone 14 lineup, supply problems in China have had a significant impact on the availability of the iPhone 14 Pro. Although shipping delays have now improved, Apple will still have a challenging Q4 earnings call as a result.
Shipments decreased by around 58% year-over-year in November 2022, according to a joint analysis from J.P. Morgan and the China Academy of Information and Communications Technology (via AppleInsider). Since September, total iPhone shipments have decreased by 31% in comparison to last year.
Apple’s entire market share in China has decreased by 2% as a result of this abrupt reduction. From 21% in November 2021 to 19% in November 2022, it decreased.
Due to a 34% fall in the entire smartphone market, the decline in market share wasn’t as severe. Apple’s decline is a result of a supply problem brought on by COVID-19 lockdowns in China, subsequent protests, and widespread staff walkouts at Foxconn’s largest iPhone manufacturing facility in Zhengzhou. The most popular models from the iPhone 14 lineup, iPhone 14 Pro and iPhone 14 Pro Max, have also been the most affected
Due to supply continuing restricted for at least the first half of the month, J.P. Morgan anticipates that year-over-year shipment decreases will continue into December.
Investment bank UBS recently reported that despite a fall in iPhone shipments year-over-year in November, it remains optimistic about Apple’s revenue in the long run.
In related news, the shipping forecast for the iPhone 14 series in 2022 has been reduced to 78.1 million due to the extensive issues brought on by China’s COVID-19 crisis. The good news is that China has lifted COVID-19 lockdowns and Foxconn is now operating at 90% of capacity at its main production facility with 200,000 people currently employed at the plant.