Coronavirus can Hamper the Production of New iPhones. The outbreak of the new coronavirus in China may have an impact on tech company Apple.
In the first half of the year, the tech giant starts producing the new iPhone models that come on the market in the fall, but suppliers in China may be bothered by the measures taken by that country to prevent the coronavirus from spreading. Limit, writes Nikkei Asian Review business magazine.
According to Nikkei, Apple has asked its partners to produce up to 80 million devices. Of those, 65 million are from the latest models and 15 million from a new, cheaper iPhone that Apple would like to introduce this spring.
The business magazine states that the mass production of that cheaper iPhone would start at the end of next month and possibly be delayed.
Apple is prepared for the effects of the coronavirus because the tech giant has ensured that all significant iPhone components are made by at least two companies that also have to be in other countries.
If a supplier is then bothered by the coronavirus, the production of iPhones does not necessarily stop.
Nevertheless, the lion’s share of production takes place in two factories in China. That policy was already set by Apple in 2011 when a tsunami hit Japan.
Apple will release figures on the holiday quarter later on Tuesday. The company is expected to be able to report higher iPhone sales.