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Following reports of potential production delays on iPhone components and even shipping delays for products like the Mac Pro, DigiTimes reports today that global notebook shipments could fall up to 36 percent in the first quarter of 2020 due to the coronavirus outbreak.

macbook_air_trio_transparent.png

This includes Apple supplier Quanta Computer, which produces Apple's MacBook line. Suppliers like Quanta have moved volume production to facilities in Taiwan to meet client needs, but a component shortage is believed to continue to affect shipment numbers. This shortage is due to suppliers who are prevented from going to work following the outbreak.

This component shortage is predicted to cause disruptions to the supply chain in March. Meanwhile, Quanta is said to be moving to accelerate volume production at its new facilities in Taiwan in order to fulfill rush shipments to its clients in the United States.

Previously, global notebook shipments were predicted to fall about 17 percent in Q1 2020, but that number has been increased to between 29 and 36 percent as of DigiTimes' latest research. "Severe labor and components shortages and stagnant logistics arising from the coronavirus outbreak are derailing supply chain in China, which commands over 90% of global notebook production."

Article Link: Global Notebook Shipments in Q1 2020 Estimated to Decrease 29-36% Following Coronavirus Outbreak
 

nicho

macrumors 601
Feb 15, 2008
4,081
2,999
I wonder how many people buy notebooks as an "impulse buy". This is probably terrible news for some companies, but I'd guess a bumper Q3 would be on the horizon for Apple.
 

Freeangel1

macrumors 6502a
Jan 13, 2020
779
1,123
WELL. guess that answers that. looks like the future belongs to the iPad and other tablets. and arm processors, long battery life and everyone wanting your personal data up in the cloud on their servers.
 

fmcshan

Editor
Apr 8, 2019
223
749
This is to be expected, as suppliers are having trouble keeping up with production due to both the closure of factories and component shortages. Many custom Mac shipments also have a delivery date of mid to late March.
 

MRrainer

macrumors 65816
Aug 8, 2008
1,396
893
Zurich, Switzerland
If you look around, most industries are scrambling to assess their exposure.
Some haven't heard from their suppliers in China for weeks. If they send mail or phone, they receive boiler-plate answers that all will be well and they start production next week (which may or may not be true).

For fear of repercussions, nobody wants to diverge from the party-line over phone or email.

It could very well be the Black Swan, the straw that broke the camel's back, that ends up sending us down the rabbit-hole of a very deep recession.

Tesla's Shanghai Gigafactory seems to start producing again, they have workers there at least. So that's a good sign. But Shenzen is still in lockdown. And so is of course Hubei.

We will see.

But this ain't gonna be pretty.
 

DevNull0

macrumors 68030
Jan 6, 2015
2,612
5,178
This might indicate that maybe...just maybe we shouldn't be relying on China as hard as we do for their cheap labor.

The problem is no public company is able to think beyond the current quarter. A CEO who spends a little more on labor today in the hope it will save the company from a problem like this will be fired very quickly. A CEO who puts all their eggs in the cheapest basket can shirk off blame for something like this which was "beyond their control".

GM wen't bankrupt because of short term greed. Ford was more responsible and weathered the storm on their own. So the government bailed out GM using everyone's tax money including Ford's, and GM is the bigger more successful company. Our entire system punishes healthy sustainable behaviour.
 
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AdonisSMU

macrumors 604
Oct 23, 2010
6,891
2,465
Apple overexposed itself to China. They should develop at least some of their US shipments in the US.
 

SteveJUAE

macrumors 68040
Aug 14, 2015
3,719
3,780
Land of Smiles
Place of production does not matter / The place where the design and software was created is important.
While in the west we tend to buy by brand and assume the QA/QC of major brands take care of issues arising from place of manufacture or simply have no choice or care where assembled.

Many nationalities take their discrimination further, it is not uncommon in large chain stores in Asia to stock identical products, side by side, but manufactured in different locals.

This is something we do not see in the west but maybe we should be given such options than just the cheapest
 

MacBH928

macrumors 604
May 17, 2008
6,685
2,782
On the "glass half full" side of things, companies will finally understand not to rely too much on 1 source or country. Diversification is key to limit risks. This is nothing new but people don't seem to learn, so they get reminded with such things. I do hope corporation take a hard hit... like a devastating one.

This is also positive because as companies finally wake up and start withdrawing from relying on China, the totalitarian gov. will finally lose its economical grip and hopefully friendlier gov. like India and Indonesia might get the benefit. I am sorry for the people of China, but we can not fix their problems for them.
 

skir

macrumors newbie
May 22, 2017
15
19
Russia
This might indicate that maybe...just maybe we shouldn't be relying on China as hard as we do for their cheap labor.

Tim Cook said Chinese labor stopped being cheap "many years ago", and it is not the case for Apple. Proof:
 

MRrainer

macrumors 65816
Aug 8, 2008
1,396
893
Zurich, Switzerland
how bout aapl apply big discounts on 2020 macs to boost sales

Apple has no demand-problem (yet!) outside China. They have a supply-problem.
"Their" workers (the Foxconn employees) just did not show up Monday last week because they were either held in quarantine or they had no means to travel to their place of work. I would assume a lot of trains just don't run. At all.

Historically, Apple always had a very(!) lean inventory. As their inventory is fundamentally a deprecating asset, that's not a bad thing, normally. Just in cases like those.
 

jeyf

macrumors 68020
Jan 20, 2009
2,173
1,040
Place of production does not matter / The place where the design and software was created is important.
Dosnt take much to setup a top notch free engineering university and a screening system to funnel select students into it. Creating a large organized STEM workforce.


the spread of coronavirus like things may be a limiting factor for totalitarian governments that keep a firm social and economical grip on their population. Imagine unpacking your next computer and it is YOU that assimulates the computer virus.
 
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