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Kuo: Apple is facing a shortage of 15-20 million iPhone 14 Pro ahead of the holiday shopping season

A new report from Apple analyst Ming-Chi Kuo points to a major shortage that Apple will face in the remaining weeks of the holiday shopping season. According to Kuo, Apple is expected to ship between 70-75 million iPhone 14 Pro and Pro Max units, 15-20 million fewer than initially expected. The number is much greater than bloombergEstimated around 6 million units from a recent report.

Shortages have been attributed to the recent COVID outbreak in China, which prompted factories to close and sparked labor protests at the Foxconn factory where iPhones are made. Kuo also noted that Pegatron and Luxshare ICT, two other Chinese manufacturers, will account for about 10% of iPhone 14 and 14 Pro orders, respectively. That should help make up for some of the shortfall, but not until late December.

These iPhone 14 Pro models are priced too high, so a shortage of several iPhones would significantly reduce Apple’s iPhone revenue in the fourth quarter of 2022.

Apple iPhone 14 Pro and iPhone 14 Pro Max
Apple iPhone 14 Pro and iPhone 14 Pro Max

Currently, the iPhone 14 Pro and 14 Pro Max are out of stock in Apple Stores in the US and orders will not be fulfilled until December 29 at this writing. Kuo believes that people will not wait to buy a new iPhone 14 Pro when the effects of the recession start to take hold. Instead, Kuo says, “Most of the demand for the 4Q22 iPhone 14 Pro series will disappear amid the economic recession due to the large supply-demand gap rather than being postponed.”

Head to the link to read Ming-Chi Kuo’s full report.