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Coronavirus outbreak will continue to affect Apple's iPhone production through April



Ongoing delays due to the Coronavirus outbreak in China are likely to cause Apple to miss its mass production schedule for the low-cost iPhone, and inventories of existing models could increase until April, according to new information released today from the Japanese website or stay low for longer Nikkei .

"iPhone" suppliers are currently said to be 30 to 50 percent full on average, and hurdles such as labor shortages and transport logistics have to be overcome to achieve full production.


Apple planned to start mass-producing the upcoming low-cost "iPhone" in February, but sources speaking with Nikkei said that achieving this goal was "very challenging" and production was on March could be delayed.

Current rumors suggest that Apple plans to launch the new "iPhone" at an event that is slated to take place in March, possibly on March 31. Apple then released the device on April 3. Although there are problems with production, there are several sources said the new "iPhone" will still be on time.

"The suppliers are doing their best to produce and ship the [cheaper]" iPhone "within four weeks. … The delay cannot be too long, otherwise it will affect the sales strategy of the new one Apple products in the second half of this year, "one of the people with direct knowledge of the matter told Nikkei.

Apple hoped that its suppliers would produce 80 million "iPhone" units in the US in the first half of 2020, including 15 million low-cost iPhones, but the company's production plan is now uncertain. Apple announced yesterday that it would not meet its March quarter sales targets due to limited "iPhone" supplies and low customer demand for Apple products in China during the outbreak.

Factories in China expect more workers to return to work as early as Monday when a quarantine period ends for those who have returned from other provinces. Travel logistics is currently considered a "big problem" because suppliers have to change truck drivers due to the quarantine requirements when crossing the provincial borders.

The coronavirus infected over 73,000 people and there were 1,870 deaths, mainly in China.


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