Coronavirus Will Negatively Impact iPhone Production for Q1; iPhone SE 2 Launch May Still Happen on Time
A new report from Apple analyst Ming-Chi Kuo details how the spread of the coronavirus will impact Apple’s iPhone business for the current quarter. It’s also possible that this outbreak will have a negative impact on the entire smartphone market for the first half of the year.
Earlier Reports Stated That iPhone SE 2 Production Will Not Be Affected Because of Coronavirus
Thanks to the surging popularity of the iPhone 11, followed by the anticipated arrival of the iPhone SE 2 at the end of March, Apple reportedly told its supply partners to increase production by 10 percent. However, Ming-Chi Kuo reports that the virus could halt those plans to a certain degree. Apple’s outlook on the matter may not change because it sources components from multiple suppliers, which suggests that the iPhone SE 2 launch may happen without any production problems in the future.
Kuo still states that iPhone shipments for this quarter might drop by 10 percent. This puts the total shipments estimate for this quarter at 36-40 million. The figure isn’t terrible by any means, so Apple can comfortably bounce back considering it didn’t even have a low-cost model to offer to the masses in 2019. Now that the company can offer the iPhone SE 2 for a rumored starting price of $399, we should expect a burst in shipments for the second quarter of 2020 right? That isn’t the case too, because Kuo says that Q2 2020’s prediction is difficult to set at the moment.
He’s unaware of how the coronavirus epidemic will spread in the coming months, which can mean Apple’s shipments forecast takes a bigger dive later in the year. Mass production of the iPhone SE 2 was expected to start from this month, with Apple reportedly ordering 15 million units of the low-cost model to be made. It’s still not clear what the technology giant’s contingency plan is for the coming months, but we’ll update you regarding any development in the near future.