Apple warned investors yesterday that it won’t hit its Q2 2020 revenue guidance due to the ongoing effects of the coronavirus outbreak in China. Now, a new report from Nikkei says that Apple will “likely miss its schedule” for mass production of the low-cost iPhone 9.
Apple had originally planned to begin mass production of the iPhone 9 in February, but Nikkei reports that production is likely delayed until sometime in March. The report cites “multiple sources” and says that it would be “very challenging” for Apple to maintain its original production schedule at this point.
“The suppliers are doing their best to produce and ship the (cheaper) iPhone within four weeks. …The delay can’t be too long, otherwise it will affect the sales strategy of Apple’s new products in the second half of this year,” one of the people, who has direct knowledge of the matter, told Nikkei.
Apple suppliers are operating at between 30% and 40% of their capacity, the report says. This could mean that iPhone supply constraints extend into April due to hurdles surrounding “labor shortages to logistics transportation.”
Does this mean the oft-rumored March release of the iPhone 9 might also be delayed? It’s hard to know for sure, but a report from Bloomberg this morning said that Apple would likely still be able to launch the iPhone 9/iPhone SE 2 in March despite any potential coronavirus delays.
Apple had asked suppliers to manufacture 15 million units of the iPhone 9. With that production ramp up now in doubt, one possibility is that the low-cost device might face some supply constraints when it is first released next month.
Yesterday, Apple warned investors that it would not hit its Q2 2020 revenue expectations due to iPhone supply constraints and reduced demand in China due to the coronavirus situation. The company had forecast revenue between $63.0 billion and $67.0 billion.
- Apple says it won’t meet Q2 earnings range due to coronavirus, iPhone supply constraints
- Bloomberg: iPhone SE 2 on track to launch in March despite coronavirus production delays, new iPad Pro in first half of the year
- AAPL down >3% in pre-market after coronavirus news; possible $4B hit to sales
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