Citigroup: Hon Hai expects Apple iPhone production to return to normal this month

Citigroup stated in a research report that the management of Foxconn's parent company Hon Hai held several investor meetings in the United States from December 5 to 8. According to the meeting According the information disclosed on the Internet, with the adjustment of Zhengzhou's epidemic prevention policy, Hon Hai aims to resume normal production of iPhones in December.

Citigroup said that Hon Hai's profit in the fourth quarter of this year may be affected by cost increases, and management expects to gradually recover costs after consulting with customers.

Citi pointed out that demand for high-end smartphones iPhone 14 Pro / Pro Max remains strong, with no order forecast adjustment; shipments may be delayed until the first quarter of next year because production is clearly difficult to fully catch up with the demand for the fourth quarter of 2022 need.

Earlier this month, Tianfeng International Securities analyst Ming-Chi Kuo said that the Zhengzhou factory currently has a production gap of more than 12 million iPhones. Since November, the production capacity of Guannan (Shenzhen Guanlan factory) has increased to make up for the production capacity of the Zhengzhou factory. He pointed out that the number of employees in the Zhengzhou factory has now reached 40% to 50% of the full capacity period, and the production capacity is gradually recovering. It is expected that the overall capacity utilization rate of the Zhengzhou factory will double to about 60% in December.

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