Updated: March 2, 2020 10:47:43 am
The Coronavirus pandemic continues to haunt Apple and the iPhone, the world’s most popular smartphone. While Apple has already acknowledged that the Coronavirus outbreak is impacting the company’s business, things are likely to remain the same for a few more months. Ming-Chi Kuo of TF International Securities tells investors that the iPhone production won’t improve until the second quarter of 2020.
Foxconn, Apple’s manufacturing partner for the iPhone, has seen a big production impact due to the Coronavirus outbreak in China. Although Foxconn has already kick-started the production of iPhones by opening some factories in the country, the contract manufacturer is unable to operate those factories at full capacity. Apple manufactures some iPhone models in India as well as Vietnam.
Not just Foxconn, Apple’s other partners are significantly impacted by the Coronavirus outbreak, which has taken over 3000 deaths around the world. Shipments from iPhone camera lens supplier Genius Electronic Optical has reduced significantly over the last month. Kuo estimated that there is a month of stock remaining, with full production said to start in May at the earliest.
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Speaking to Fox Business on Thursday, Apple CEO Tim Cook said that the situation is improving in China. Cook said that the Chinese government is getting the Coronavirus situation “under control”. Apple warned earlier in February that it did not expect its revenues for the March quarter to be lower to the guidance it provided in January because of Coronavirus.
It’s being said that Apple might cancel its upcoming March event, where it is planning to launch the long-awaited “budget” iPhone 9 model alongside the new iPad Pro and On-ear headphones. Apple’s stock is under pressure, thanks to the Coronavirus outbreak.