Apple has reported a shortage of iPhone production

Shares of Apple That fell 2 percent on Monday after Bloomberg reported that the company could face production shortages of about 6 million iPhone Pro models due to unrest at Foxconn’s Chinese factory.

Apple and its contract manufacturer Foxconn expect to make up that shortfall by 2023, according to Bloomberg, citing a source.

Related investment news

China’s Covid-19 protests could cut iPhone production by up to 10 percent, Wedbush says.

Apple declined to comment on the report.

The unrest at Foxconn follows protests in China against the country’s zero-covid policy. Cases of Covid-19 have risen sharply in China, leading to residential lockdowns and business closures in many major cities. Protests against the shutdowns have erupted across the country, including at Foxconn’s iPhone assembly plant in Zhengzhou.

Workers at Foxconn have protested over food shortages, pay issues and the company’s handling of the Covid-19 outbreak. Workers smashed cameras and windows at some protests last week, Reuters reported.

Foxconn said last week that it would continue to meet with workers and the government to prevent similar acts of violence. It said it continues to communicate with employees about pay concerns and will “make every effort to proactively address employee concerns and reasonable requests.”

Analysts are also concerned about production cuts ahead of the holiday season.

Shipping times for the iPhone 14 Pro and Pro Max have been significantly delayed, Counterpoint Research issued guidance on Monday. Last week, Counterpoint said customers were waiting 37 days for delivery, the longest wait since the models launched. Apple’s regular iPhone 14 is still in stock.

In a separate note on Monday, Wedbush analyst Dan Ives predicted a major iPhone shortage due to China’s “head-scratching zero-covid policy.”

“We estimate that Apple currently has a significant iPhone shortage of at least 5% of units in the quarter and could take up to 10% over the next few weeks, depending on Foxconn’s production and protests in China,” he told investors.

JPMorgan was more optimistic in a note published on Sunday, but said it was still concerned about a slowdown in China. “Continued challenges surrounding delays to normal production levels at the Zhengzhou facility may limit the speed at which supply-demand balance can be reached in the coming months, but supply appears to have rebounded from severe levels,” he wrote. .

— CNBC’s Michael Bloom contributed to this report.