Foxconn Has Reportedly Seen 'Fairly Small Impact' From Coronavirus Outbreak, But That Could Change

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Apple's largest manufacturing partner Foxconn has seen a "fairly small impact" from the Wuhan coronavirus outbreak so far, but the company could face a "big" impact to its iPhone production if the Chinese government forces factories to remain closed for an additional week or longer, according to Reuters.

The report claims that Foxconn has halted "almost all" of its production in China through February 9 as ordered, but its factories in other countries such as Vietnam, India, and Mexico have apparently been able to fill the gap for now.


The timing of the coronavirus outbreak could impact supply of the new lower-cost iPhone that Apple is expected to announce in March. Bloomberg recently reported that production of the device was slated to begin in February, but the coronavirus outbreak could delay that timeframe.

Given that Apple typically sources components from multiple suppliers, and that Foxconn has factories outside of China, it is likely that Apple will still release the lower-cost iPhone in March, even if supply is limited at launch.

Last week, the World Health Organization declared the Wuhan coronavirus outbreak a global public health emergency. More information about the virus and how to protect yourself is available on the agency's website.

Article Link: Foxconn Has Reportedly Seen 'Fairly Small Impact' From Coronavirus Outbreak, But That Could Change
 

EugW

macrumors G3
Jun 18, 2017
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1. For everyone's sake, hopefully they get this 2019-nCoV outbreak under control sooner rather than later, like they did with the SARS coronavirus.

2. Doesn't Foxconn also make the iPad Pros? Will the shutdown also impact iPad Pro 2020 manufacturing?
 

sirozha

macrumors 6502a
Jan 4, 2008
993
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1. For everyone's sake, hopefully they get this 2019-nCoV outbreak under control sooner rather than later, like they did with the SARS coronavirus.

2. Doesn't Foxconn also make the iPad Pros? Will the shutdown also impact iPad Pro 2020 manufacturing?
Who cares about iPad Pros? The iPhone is what going to break AAPL in 2020.

Apple will have to decide where to send their limited stock of the iPhone: keep it in China, where iPhone is in a major battle against Huawei, or to send it to the Western countries, where Apple is in a major battle against Samsung.

It appears to me that the iPhones will be sent to the developed countries because Samsung is not going to be affected by the Chinese epidemic, since they moved all their smartphone manufacturing out of China last year. So, with the shortage of the iPhones in the Western world, Samsung will take a significant percentage of the market share from Apple.

As for Huawei, they will most likely face the same challenges with reduced manufacturing capabilities as Apple-Foxconn partnership, so the war with Huawei for the Chinese marketshare will not be meaningful until the epidemic subsides.
 
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stylinexpat

macrumors 68000
Mar 6, 2009
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If factories go back to work on 10th as scheduled then losses can be made up easily but if China extends this another 10 days chaos will start for many around China. Markets will see a huge correction if we see a 10 day extension. Next quarter earnings will also miss expected earnings then for Apple.
 
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EugW

macrumors G3
Jun 18, 2017
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Who cares about iPad Pros?
I and a lot of other people on MacRumors, of course.

From a personal point of view, I have very little interest in the iPhone 9 / SE2, because nobody in my family will be buying one. As for the fall iPhones, I suspect the 2019-nCoV outbreak will have little impact on those, unless this outbreak reaches near-apocalyptic proportions.
 
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FreakinEurekan

macrumors 68040
Sep 8, 2011
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I and a lot of other people on MacRumors, of course.
I think the point is, "Who cares if the iPad Pro is delayed by a week or three?" - the quantity of iPad Pros manufactured isn't likely to be tremendously impacted, unless the shutdown is for a VERY long term. The ONLY people who are really all that "concerned" about impact, are stockholders - anyone who is an end user and gets bent out of shape by having their new shiny phone delayed by a few weeks by an illness that has the potential to turn into an epidemic, I have no sympathy for.
 

cuencap

macrumors regular
Dec 12, 2011
209
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The real test will be how many workers decide to travel back to the factory they work at after CNY. There’s typically an employment drop immediately after CNY due to workers choosing to stay in their hometown.
 

newyorksole

macrumors 601
Apr 2, 2008
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New York.
Glad to hear they are following the rules. Personally I’d rather they prioritise human life over manufacturing, if experts recommend a further closure then I hope they do that too. At the end of the day if my 12 down the road gets delayed for a month I really don’t care.
Who honestly would care? There would be no riot if the new iPhone comes out “late”. Consumers have no control over it and will buy it whenever it comes.

This is just about Apple and their investors. Their goal is to make a lot of money and release products at strategic times. That’s all this is all about Lol.
- - Post merged: - -

Unfortunately, wall street cares. They'll see it as a slow down when comparing against last quarter's sales.
Exxxxxactly. This guy gets it.
 

citysnaps

macrumors 603
Oct 10, 2011
6,011
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San Francisco
The good news is Apple's iPhone manufacturers are able to turn on a dime at Apple's request, significantly ramping up production when needed; ie after a new product release, Christmas demand, etc.

No doubt in my mind Apple's brilliant supply/manufacturing managers have and have had a plan in motion to cause the above to happen to the extent needed as soon as it's possible, and in the meantime are ramping manufacturing capacity elsewhere.

The above is what separates Apple from other consumer tech companies.
 

Cosmosent

macrumors 65816
Apr 20, 2016
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Anybody know where the factory in Mexico is ?

And what their production capability is ?

To my knowledge, currently, 99% of Apple's "iPhone production" comes from China, & that other areas of the world are ONLY now starting to come online.

Anybody have other "iPhone production" STATs they care to share ?
 

PickUrPoison

macrumors 604
Sep 12, 2017
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Sunnyvale, CA
Anybody know where the factory in Mexico is ?

And what their production capability is ?

To my knowledge, currently, 99% of Apple's "iPhone production" comes from China, & that other areas of the world are ONLY now starting to come online.

Anybody have other "iPhone production" STATs they care to share ?
Nowhere near 99%.

Last November when iPhone tariffs looked like a real possibility, Foxconn said they had sufficient capacity outside of China to completely cover US demand. That’s about 60-70 million iPhones a year.

But who cares about the effect on Apple production. This is an epidemic that’s on the edge of becoming a pandemic. If production is affected, so be it.
 
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Duane Martin

macrumors 6502
Oct 15, 2004
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Apple will have to decide where to send their limited stock of the iPhone: keep it in China, where iPhone is in a major battle against Huawei, or to send it to the Western countries, where Apple is in a major battle against Samsung.
Interesting point. Curious how in this scenario Huawei and Samsung are continuing to manufacture their phones while iPhone production is shut down? Though a large part of Samsung's production is in Vietnam they do still have a number of parts coming out of China. And I am pretty confident that Huawei does most of its manufacturing in China. When factories shut down in China it won't just be Apple that is affected. Nor just tech, for that matter.
 

Wanted797

macrumors 6502a
Oct 28, 2011
730
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Australia
I’m just wondering. Could someone who has it possibly have touched a phone yet to be shipped.

And will we get a whole new outbreak around middle of the year when all the devices made in China (not just Apple). Hit the shelves of the rest of the world?
 

ph001bi

macrumors 6502
May 26, 2015
341
712
London
Who cares about iPad Pros? The iPhone is what going to break AAPL in 2020.

Apple will have to decide where to send their limited stock of the iPhone: keep it in China, where iPhone is in a major battle against Huawei, or to send it to the Western countries, where Apple is in a major battle against Samsung.

It appears to me that the iPhones will be sent to the developed countries because Samsung is not going to be affected by the Chinese epidemic, since they moved all their smartphone manufacturing out of China last year. So, with the shortage of the iPhones in the Western world, Samsung will take a significant percentage of the market share from Apple.

As for Huawei, they will most likely face the same challenges with reduced manufacturing capabilities as Apple-Foxconn partnership, so the war with Huawei for the Chinese marketshare will not be meaningful until the epidemic subsides.
People who buy iPhoned will continue to buy iPhones. It doesn't matter if they have to wait. We've waited for the X, we've waited for AirPods Pro, and we'll wait for the 12 if we have to. I won't get a S20 or a note11 even if it's free.
 

Scottsdale

macrumors 601
Sep 19, 2008
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I am shocked Mac Rumors would even write the story and people here would give a crap about some first world problem like OMG a delay in a $399 iPhone or any other product. This is a global pandemic that could alter the world. It’s time we all think first and foremost about how people are affected in a potential worldwide crisis rather than our precious iPhones or AAPL stock. Life matters, and stopping the virus matters - it’s not about corporate profits or God forbid a delayed iPad Pro!
 
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EugW

macrumors G3
Jun 18, 2017
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I am shocked Mac Rumors would even write the story and people here would give a crap about some first world problem like OMG a delay in a $399 iPhone or any other product. This is a global pandemic that could alter the world. It’s time we all think first and foremost about how people are affected in a potential worldwide crisis rather than our precious iPhones or AAPL stock. Life matters, and stopping the virus matters - it’s not about corporate profits or God forbid a delayed iPad Pro!
Err... It's an Apple rumour site. It says so right in the name. Of course they're going to write about potential Apple product delays.

In fact, I think they'd be remiss NOT to talk about it.
 

newyorksole

macrumors 601
Apr 2, 2008
4,048
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New York.
I am shocked Mac Rumors would even write the story and people here would give a crap about some first world problem like OMG a delay in a $399 iPhone or any other product. This is a global pandemic that could alter the world. It’s time we all think first and foremost about how people are affected in a potential worldwide crisis rather than our precious iPhones or AAPL stock. Life matters, and stopping the virus matters - it’s not about corporate profits or God forbid a delayed iPad Pro!
I like to hear things from both sides (as you should too).

So I say that to say this: MacRumors is an Apple news/rumors website. No where in this article or website does it say that iPhones and electronics are more important than human lives. This website is dedicated to delivering news that affects Apple. Point plank. It’s possible to care about human lives AND electronics. No one on this forum can do anything to stop the spread of this virus, therefore we are going to do what this website was designed for... Talking about Apple.

Does that make sense?
 
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Seanm87

macrumors 6502a
Oct 10, 2014
923
1,218
I’m just wondering. Could someone who has it possibly have touched a phone yet to be shipped.

And will we get a whole new outbreak around middle of the year when all the devices made in China (not just Apple). Hit the shelves of the rest of the world?
Viruses can’t survive long outside the body.
 
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