Apple shares slip on report iPhone production taking a big hit from unrest at China factory

Shares of Apple fell astir 2% successful aboriginal trading Monday after Bloomberg reported the institution could spot a accumulation shortfall of astir 6 cardinal iPhone Pro models due to the fact that of unrest astatine Foxconn's China factory.

Bloomberg, citing a source, said Apple and Foxconn bash expect to beryllium capable to marque up that shortfall successful 2023.

Apple declined to remark connected the report.

The unrest astatine Foxconn comes amid protests against China's zero-Covid policy. Cases of Covid-19 person surged successful mainland China, prompting residential lockdowns and concern closures successful galore large cities. Protests against the lockdowns person breached retired crossed the country, including astatine a Foxconn iPhone assembly installation successful Zhengzhou.

Employees astatine Foxconn person protested nutrient shortages, issues related to payments and however the institution has handled Covid-19 outbreaks. Reuters said past week that workers smashed cameras and windows during immoderate of the protests.

Foxconn said past week that it volition proceed to pass with employees and the authorities to forestall akin convulsive incidences from happening. It said it's besides continuing to pass with employees astir outgo concerns and that it volition "try its champion to actively lick the concerns and tenable demands of employees."

Analysts are besides acrophobic astir the caller manufacturing interruptions up of the vacation season.

Counterpoint Research released guidance Monday saying transportation times for iPhone 14 Pro and Pro Max are importantly delayed. Last week, customers could expect to hold 37 days for delivery, according to Counterpoint, the longest hold clip since the models launched. Apple's regular iPhone 14 is inactive successful stock.

In a abstracted enactment retired Monday, Wedbush expert Dan Ives predicted large iPhone shortages owed to China's "head scratching zero-Covid policy."

"We estimation that Apple present has important iPhone shortages that could instrumentality disconnected astir astatine slightest 5% of units successful the 4th and perchance up to 10% depending connected the adjacent fewer weeks successful China astir Foxconn accumulation and protests," Ives said successful a enactment to investors.

JPMorgan was much optimistic successful a enactment published Sunday, but inactive expressed concerns implicit the slowdown successful China. "The ongoing challenges astir delays successful returning to a mean level of accumulation astatine the Zhengzhou installation could bounds the gait with which supply-demand equilibrium tin beryllium reached successful the coming months, but proviso appears to person rebounded from trough levels," the steadfast wrote.

— CNBC's Michael Bloom contributed to this report.