Hon Hai expects to resume iPhone production this month. Citi: it is difficult to meet the demand for high-end models
28 August 2023
Hon Hai held several investor meetings in the United States at the beginning of this month. According to the information disclosed at the meetings, with the gradual relaxation of epidemic prevention policies in Zhengzhou, Hon Hai aims to resume normal production of iPhone in December.
Citigroup said that Hon Hai's Q4 profit this year may be affected by increased costs, and the management expected to gradually recover costs after consultation with customers.
Citigroup pointed out that the market demand for high-end smartphone iPhone 14 Pro/Pro Max is still strong, and there is no adjustment to the order estimate. The shipment may be delayed to Q1 next year, because it is obviously difficult for the output to fully meet the demand of Q4 this year.
Guo Mingxuan, an analyst of Tianfeng International Securities, said last week that the gap in the production of iPhones in the Zhengzhou plant exceeded 12 million. Since November, the capacity of the Guanlan plant in Shenzhen has increased, making up for the capacity of the Zhengzhou plant. In December, the capacity utilization rate of Zhengzhou plant can be doubled to 60%, and the capacity will be gradually restored. He also pointed out that the shipment of iPhone 14 Pro by Lixun and Heshuo, the competitors of Hon Hai Foxconn, did not help much, but depended on the capacity improvement of Foxconn.