Apple Factories In China Reopen, But The Demand Might Be Low Due To The Coronavirus Outbreak

Apple

China gets back in track and reopens its economy after months of struggling and fighting the coronavirus outbreak. Apple Inc’s iPhone factories are ready, too, to take new orders and get back at its regular schedule. But with the coronavirus breakdown in the rest of the countries, Apple faces another trouble. How many buyers out there will be ready for both current variants and a new slate of phones in the fall?

Apple’s Got New Stuff to Take Care Of

One of the Apple’s officials explained how the tech giant orders for the quarter closing in March could decrease up to 18 %. Comparing with the last year’s reports, such a loss will bring trouble to Apple. The manufacturing ramp-up for the upcoming smartphones that support the next-gen 5G connectivity has been delayed, according to the same Apple official.

The possibility of releasing the 5G smartphones in the fall still exists. “The focus now is the demand from consumers in the US and Europe,” said Apple’s official. One of Apple’s main display suppliers is getting ready for a similar rate of contraction, according to some reports.

The Coronavirus Outbreak Affected Apple

The company had predicted shipments of 70 million iPhone displays in 2020. Currently, it became more complicated, and lowering that target is considered by over 17 % to around 58 million units. The company also decided to drop the workforce at its Apple-based manufacturing lines in its Vietnam factory. There, the displays are assembled before reaching China where are put into devices.

Earlier in March, Apple ceased the activity of retail stores globally, even if China started to reopen it. With much of the US and Europe on quarantine and unemployment rising worldwide, it is unknown when demand might return. Apple could also yet get troubled more with the chain issues as countries such as Vietnam and Malaysia release new restrictions to fight the coronavirus outbreak.

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *