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Coronavirus could hit Apple’s plans to ramp up iPhone production

The success of the iPhone 11 has prompted Apple to increase the production of its slate of smartphones by 10% during the first half of the year, but the outbreak of the coronavirus could hit its plans, according to reports.

Apple has booked orders for 80m iPhones between now and June, with the iPhone 11 and current models making up the vast majority of that output and around 15m slated for the new iPhone SE successor, which should arrive in March.

However, mass production might be delayed due to the outbreak of the coronavirus, which has forced the Chinese government to shut down 14 cities to prevent the spread of infection.

If the situation improves in the coming days, then Apple may be able to start production as planned in the third week of February.



The coronavirus outbreak has already hit the stocks of major tech players in the US, with Apple retreating 3% on Monday due to fears about the potential for a global pandemic.

Apple heads into the Chinese New Year in a strong position after sales of the iPhone 11 and iPhone 11 Pro surged in China, outselling last year’s models by some margin.

Bloomberg believes that iPhone sales could bounce back to growth in 2020 after a period of decline and that around 200m models could be shipped by the end of the year.

A note by Cowen analyst Krish Sankar on Tuesday also claimed that around 6m units of the budget-oriented iPhone, which could be called the iPhone 9, will be produced during Q1.

Reports last week claimed that Apple had already given the go-ahead for the low-cost iPhone to be assembled from February.

Sankar expects the new iPhone to retail from $475 when it goes on sale in the spring.

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Chris

I've been a passionate evangelist for Apple and the Macintosh throughout my working life, my first love was a Quadra 605 working with a small creative agency in the south of Norfolk UK in the mid 1990's, I later progressed to other roles in other Macintosh dominated industries, first as a Senior graphic designer at a small printing company and then a production manager at Guardian Media Group. As the publishing and printing sector wained I moved into Internet Marketing and in 2006 co-founded blurtit.com which grew to become one the top 200 visited sites in the US (according to Quantcast), at its peak receiving over 15 million visits per month. For the last ten years I have worked as an Affiliate and Consultant to many different business and start ups, my key skill set being online marketing, on page monetisation, landing page optimisation and traffic generation, if you would like to hire me or discuss your current project please reach out to me here.

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