IPhone Supply Predicted to Decline because of Corona Virus

TEKNOKU.me – Renowned market analyst, Ming-Chi Kuo, predicts that the iPhone will experience a decline in the number of shipments in the first quarter (Q1) 2020. Kuo said the decline would reach 10 percent.

The drop in the number of shipments was caused by a coronavirus outbreak that has been raging in China in recent times.

Analysts from the research firm TFSecurities also predict that iPhone shipment will reach as low as 36 million units. This number decreased compared to the same period last year of 38 million units.

This decrease is thought to be caused by the obstruction of the iPhone supply chain. The Chinese government recently did request that people stay at home.

That’s why a number of factories that supply components and assemble Apple devices are also closed because of the spread of the coronavirus.

In his notes, Kuo also said that the number of smartphone shipments in China had decreased by 50 to 60 percent compared to the same period in the previous year.

Nevertheless, Kuo did not disclose how much this will have an impact on the income earned by Apple.

“Now it is difficult to predict what the number of shipments will be in the second quarter of 2020, due to the uncertainty of the coronavirus epidemic and consumer confidence,” Kuo said.

Apple itself is currently closing all offices and physical stores spread across China until 9 February.

In addition, last week, the Chinese government began closing down a number of smartphone factories in several regions in China. One of them is Foxconn’s factory, which is an iPhone mobile assembly vendor.

The production of the iPhone 9, which is said to be released in the near future, was reportedly disrupted because of the virus.

Not only Apple, but a number of technology companies were also affected by the spread of this coronavirus. For example, Google has to close four offices in China.

Other companies such as Facebook, LG, and even Razer have banned their employees from traveling to China.