• Only the Foxconn facility in China produces the top-tier iPhone models.
• Friday morning trading saw a 1.9 percent decline in Apple shares.
• Formerly known as Hon Hai Precision Industry, Foxconn.

According to a source with direct knowledge of the situation on Friday, Foxconn's flagship iPhone facility in China is anticipated to witness a further decline in November shipments following the most recent wave of employee unrest this week. This occurs as thousands of employees depart the facility.

The strict COVID-19 regulations that have plagued the largest Apple iPhone factory in the world have fueled employee unrest, disrupted production in time for the Christmas and Lunar New Year holidays, and forced many employees to leave the facility. 

More than 30% of Foxconn's November output may now be impacted, up from a previous internal estimate of up to 30% when the labour problems first surfaced in late October, the source added. The situation escalated on Wednesday after a fight between employees and security guards.

The insider said it is unlikely that complete manufacturing will resume by the end of this month as the factory is the only supplier of high-end iPhone models, including the iPhone 14 Pro. Hon Hai Precision Industry, the previous name of Foxconn, declined to comment. Despite having employees at the site, Apple claimed on Thursday, a request for comment on Friday went unanswered.

As worries about Apple's capacity to meet demand for the busy holiday season rise, Victoria Scholar, head of investment at Interactive Investor, warned that 'labour unrest at Foxconn's plant in China could weigh on Apple's November iPhone shipments.

'One of the tech sector's more resilient equities is still thought to be Apple. Apple, however, continues to refrain from offering official guidance in light of the macroeconomic unpredictability ' Scholar tacked on.

 High-end iPhones are going to be in short supply at stores this holiday season, US Best Buy predicted on Tuesday. Reuters last week stated that analysts said that sales of iPhones at Apple outlets in the United States during the Black Friday shopping season were also down from a year ago and that it was taking longer to restock stockpiles.

According to Christine Wang, an analyst at KGI Securities, if the current problem persists through December, approximately 10 million iPhone production units will be lost, resulting in a 12 percent decrease in iPhone shipments in the last quarter of 2022.