China-Singapore Jingwei client, April 28, according to the Wall Street Journal ’s Chinese website reported on the 28th, according to insiders, in view of the new coronary pneumonia epidemic weakened global consumer demand and disrupted manufacturing activities across Asia, Apple will Postponed the ramp-up of the flagship iPhone, scheduled for later this year, by about a month.
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According to reports, the insider said that Apple is advancing plans to release four new iPhones later this year. They said that these new iPhones (some support 5G) have different prices. There are three sizes, one is 5.4 inches, two are 6.1 inches, and one is 6.7 inches, all equipped with OLED displays.
Apple ’s annual product updates drive most of the iPhone ’s sales throughout the year. The new iPhone is the key to its mobile phone business unit, which accounts for more than half of Apple ’s total revenue. Last year, iPhone shipments failed to exceed 200 million units, the first time since 2015.
The report pointed out that before the outbreak, investors' expectations of Apple's release of 5G mobile phones this year pushed Apple's stock price soaring, setting a record high, when analysts expected 5G mobile phones to upgrade a mature product line.
Apple usually releases new iPhones in mid-September and sells them before the end of September. To do this, the company usually ramps up mass production in early summer and builds inventory around August.
People familiar with the matter said that although Apple will still produce some new phones from July to September this year, the increase in mass production will be delayed by about a month.
The Wall Street Journal's Chinese website quoted a person familiar with the matter as saying that Apple is cutting the number of mobile phones originally planned for production in the second half of this year by as much as 20%. It is unclear whether production cuts in 2020 will be delayed until 2021.
At the same time, according to Foxconn Technology Group's personnel recruitment, Foxconn has suspended the recruitment of major iPhone factories in Zhengzhou in recent weeks. Foxconn is Apple's largest supplier and the main iPhone assembler in China.
According to reports, in February of this year, Apple said that the current quarter's revenue will be lower than expected, partly because the epidemic has restricted iPhone production. Since then, investors and analysts have predicted that this year's 5G iPhone will postpone shipments.
Bernstein analyst Sakonagi said in a recent report that unless Apple cannot ship before the peak holiday sales season in 2020, investors need not worry about 5G iPhones being delayed. The peak holiday season is Apple's biggest sales season.
The report pointed out that the New Coronary Pneumonia epidemic has brought a double blow to Apple: First, it closed stores in China, and foundry manufacturers also closed factories, affecting the supply of iPhones; then in the United States and Europe, Apple also had to close stores. And stop activities in the headquarters of Silicon Valley.
Although some stores in Asia have reopened and factories have resumed production, Apple is facing uncertainty in consumer demand amid the global economic downturn. About two-thirds of the company's total sales come from the United States and Europe. After the government closed most businesses to curb the spread of the virus, these markets are suffering a historic economic contraction.
Apple has also delayed iPhone shipments in the past. In 2017, the high-end iPhoneX went on sale in November because of previous production failures, and the iPhone 8 and iPhone 8 Plus were launched in September. (Sino-Singapore Jingwei app)