Apple plans to ramp iPhone production in the first half of the year may be hamstrung by the outbreak of the Coronavirus in China, Nikkei Asian Review reported.
Sources told the publication Apple ordered suppliers to make up to 80 million iPhones in H1 2020, an increase of 10 per cent year-on-year. The bulk of the orders cover the iPhone 11, with 15 million expected to be an entry-level model the vendor is tipped to unveil in March.
The vendor was reportedly preparing to commence production of the new model in the third week of February, but restrictions on movement imposed by Chinese authorities along with the proximity of manufacturing sites to affected regions could hamper this, Nikkei Asian Review reported.
More than 100 people have reportedly died after contracting the respiratory virus, with more than 4,500 cases of infection reported globally.
Foxconn, one of Apple’s biggest manufacturing partners in China admitted the virus could affect supply chain. Founder Terry Gou last week expressed concerns, stating in a press conference: “We are considering whether or not to let employees return to China after the Lunar New Year holidays”, the news outlet reported.
The news would add further woes for Apple, which reported iPhone revenue dropped 9 per cent drop to $33.4 billion in its fiscal Q4 2019.
