Nikkei, Asian Review reported that the Apple might face challenges for their initial plan of increasing iPhone production by 10% in February as the coronavirus outbreak spreads further across China. The firm planned for manufacturing up to 80 million iPhones, which was supposed to be supplied from the manufacturing centres in China. According to the report, Apple had confirmed 65 million units for old iPhones and around 15 million models for the new model, which was supposed to be launched in March 2020.
Due to the outrageous coronavirus outbreak, there have been 106 reported deaths and 4,500 confirmed infected people in China. Many of the industries and sectors in China have been temporarily closed in hopes of curbing the outbreak. This might hamper Apple’s initial plan to rise up manufacturing for the flagship phone. China, being the second largest economy in the world might have a significant impact on economic growth.
In 2019, Apple’s shares increased by almost 86%. However, on Monday, Apple’s chip and technology stocks closed to almost 3% because of the spread of coronavirus. In 2019, Apple iPhone sales hit up to UD$142 billion and the firm is now planning to launch cut-price smartphones models in March 2020. According to the report in October, Apple planned to increase the production for iPhone 11 by 8 million.
Apple will be releasing its first quarter earnings report after the market closes on Tuesday.