Chinese New Year is a huge variable for manufacturing companies. Large employers can lose significant portions of their staff (sometimes even 20-30%) because they go back to the countryside for the holiday and then quit. However, smaller companies – especially those that employ more people that live right around the factories, and those that offer good benefits and an actual career path – tend to see less turnover. I wonder whether Foxconn’s new programs to improve working conditions have changed their turnover rate.

And yes, it’s also quite possible that Apple’s forecasting for the iPhone 5 was too high – particularly coming off a strong Q4.