Apple May Suffer Greatly Because of the Coronavirus Outbreak

Apple plans to accelerate the production of its popular iPhone devices by 10 percent in the first part of this year may be obstructed as the coronavirus outbreak expands throughout China.

According to Nikkei Asian Review, who released a report on Tuesday, the American company has made a deal with its suppliers, many of whom own manufacturing facilities in China, to produce up to 80 million iPhones in the first part of this year. The report has been citing people familiar with Apple’s plans.

The company has reserved orders for up to 65 million of its older mobile devices and about 15 million units of a new, more affordable model that it intends to announce in March 2020, the report stated. Even so, the mass manufacturing process, which is scheduled to start in the third week of February, might be postponed because of the virus outbreak.

High Demand for iPhone 11

The coronavirus outbreak has claimed the lives of more than 100 people so far and infected approximately 4,500 in China. It also isolated tens of millions of people during the Lunar New Year holiday and jolted global markets.

Apple’s shares increased by around 86 percent during 2019, surpassing a 29 percent rise in the S&P 500 index. The stock went down to about 3 percent at $308.95 on Monday as the pathogen fears pulled down the incredibly ambitious U.S. chip and technology stocks.

The American tech giant, which graphed in over $142 billion in iPhone sales in the fiscal year of 2019, has released lower-priced mobile phone models to satisfy budget-conscious people and control declining sales of its most massive product category.

Back in October of last year, Nikkei reported that Apple requested its suppliers to increase the manufacturing of iPhone 11 models by 8 million units, or approximately 10 percent, which gave a clue that the demand for the recently released version of its flagship device was increasing. The company is expected to report its first-quarter revenue after markets close on Tuesday.

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