What They Say
Foxconn saw its revenues down 11% in November following the problems at its factory in Zhengzhou, China. The firm was down 29% on October although for the year, it remains up 13.56% to $195 billion. Reuters reports that Foxconn should be back to full production in late December or early January.
Ming-Chi Kuo has suggested that Apple iPhone 14 Pro and Pro Max might fall short in production by 20 million units, although other analysts are less pessimistic.
What We Think
China really has a challenge over the next couple of years about how to unlock the zero-Covid policy without a huge increase in deaths. As far as I can tell, only New Zealand has avoided a big boost in deaths after opening up post-Covid. Recent unrest indicates that the CCP will be under increasing pressure to ease restrictions. (BR)
