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Apple's iPhone production will not significantly improve until the second quarter of 2020, according to a research note from Apple analyst Ming-Chi Kuo obtained by MacRumors. In the past few weeks, Kuo has warned of delays and low labor return rates at Apple supplier factories in China.

iphonelineupguide-b.jpg

iPhone camera lens shipments from supplier Genius Electronic Optical reportedly fell significantly over the past month, and supplies are dwindling. Kuo predicts there is about a month of lens inventory remaining, with significant production resuming in May at the earliest.

Looking forward to upcoming models, Kuo predicts the 2020 iPhones will maintain the same ultra-wide lens design as the iPhone 11.

Kuo in January predicted that all of the 5G iPhones were still on track to launch in the fall of 2020. More recently, Kuo mentioned that the long-rumored "iPhone 9" or "iPhone SE 2" would still be on track to launch in the first half of 2020 despite the coronavirus outbreak.

With the effects of COVID-19 reaching global status, it remains to be seen how much more of an impact the virus will have on Apple's supply chain.

Article Link: Kuo: iPhone Production Will Not Significantly Improve Until Second Quarter of 2020
 

MRrainer

macrumors 68000
Aug 8, 2008
1,522
1,095
Zurich, Switzerland
Not having more than a handful weeks of inventory (at best) is going to seriously impact Apple.
I assume, they're still selling through their pre-LNY stash - because China ain't making any new ones right now. When that is gone (which would be any day now), it will look rather bleak I'm afraid.
 

JPack

macrumors G5
Mar 27, 2017
12,442
22,999
It strikes me that Kuo believes the official CCP information. Which no sane person (including CDC, who visited on the ground there) does.

Two separate WHO teams have visited China. The leader of those teams, Canadian emergency expert Dr. Bruce Aylward, believes significant progress has been made and has suggested the world look to China for help fighting the virus.

No CDC team has visited China. They're probably busy enough fixing the faulty test kits that were sent nationwide and begin actual testing of Americans.
 

[AUT] Thomas

macrumors 6502a
Mar 13, 2016
773
970
Graz [Austria]
Demand didn't go away. It's just on hold for some markets.
I think in the real world (actual sales to customers) not much is happening in Q1 anyway. Probably stores will hit "low stock" levels seen, but so far phones are widely available with prices stable, indicating that we are far from a shortage.
And the SE is basically still a rumour... can't delay a product that hasn't been officially launched. And September/November is far from now.
 

voraciousvegan

macrumors member
Apr 27, 2015
47
52
Amazing how the 24/7 news hungry media can cause such a panic over a common cold virus. Amazing.
Except it's not just a "common cold virus." How often does the common cold lead to pneumonia & life-threatening respiratory illness? What's amazing is people's willingness to be blind. Outbreaks have happened before in history where millions have died -- why can't they happen again?
 

unobtainium

macrumors 68030
Mar 27, 2011
2,592
3,855
Amazing how the 24/7 news hungry media can cause such a panic over a common cold virus. Amazing.
Anybody paying attention to the facts and aware of what has happened and is happening in China, Iran, and Italy, could not possibly believe what you are saying. It's not the end of the world, but it's not a common cold. Lots of older and vulnerable people will die because of this virus.
 

nylon

macrumors 65816
Oct 26, 2004
1,393
1,029
The markets reflect research of what's happening on the ground in China. I would wager significant disruption to production and supply chains this year for Apple and everyone else.
 

Mr. Dee

macrumors 603
Dec 4, 2003
5,990
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Jamaica
I think what a lot of us might be forgetting, Apple is not just manufacturing new models of the iPhone, but older models too, which they sell to a variety of consumers; even if the market for iPhone 11’s has dwindled. They still need older sensors for older models, previous generation A-Series processors, in addition to parts for other products such as the Apple Watch, AirPods and iPads. So, this indeed can have a serious impact on their bottom line over the next 6 to 9 months. Certainly, if Apple saw this happening back in September of 2019, they would have just asked all suppliers to go into overdrive to create a years reserve of older and newer products to weather the storm. But, of course, they couldn’t have foreseen this happening.
 

danny842003

macrumors 68000
Jun 6, 2017
1,825
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Amazing how the 24/7 news hungry media can cause such a panic over a common cold virus. Amazing.

Yes nations are literally trashing their economies because of the media....
I’m not saying you should panic but this isn’t a common cold. Spanish flu (a common cold by your logic) killed 50m people with a much less connected word.
 

BootsWalking

macrumors 68020
Feb 1, 2014
2,267
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Two separate WHO teams have visited China. The leader of those teams, Canadian emergency expert Dr. Bruce Aylward, believes significant progress has been made and has suggested the world look to China for help fighting the virus.

No CDC team has visited China. They're probably busy enough fixing the faulty test kits that were sent nationwide and begin actual testing of Americans.

I agree, there is much to learn from the country whose political corruption and ineptitude allowed a deadly virus to devastate not only its own citizens but now threatens people all over the world as well.
 
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anek007

macrumors regular
Jul 30, 2014
189
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Except it's not just a "common cold virus." How often does the common cold lead to pneumonia & life-threatening respiratory illness? What's amazing is people's willingness to be blind. Outbreaks have happened before in history where millions have died -- why can't they happen again?

it’s not a cold but just a flu. Death percentage is less than 10% of the number of people who caught it. The people who are dying already have health issues. Most people with no health issue will just show signs/symptoms of a normal flu. The influenza flu this 2019-2020 season already reach 4,800 death in the US. The flu season isn’t even over yet. Maybe you should stay indoors just to be safe.
 

fairuz

macrumors 68020
Aug 27, 2017
2,486
2,589
Silicon Valley
it’s not a cold but just a flu. Death percentage is less than 10% of the number of people who caught it. The people who are dying already have health issues. Most people with no health issue will just show signs/symptoms of a normal flu. The influenza flu this 2019-2020 season already reach 4,800 death in the US. The flu season isn’t even over yet. Maybe you should stay indoors just to be safe.
This isn't a flu. And the average flu death rate is much, much lower. More have died from it because millions were infected, not a few tens like with coronavirus.
 

Constable Odo

macrumors 6502
Mar 28, 2008
483
268
So what if production is delayed? Apple will likely be able to make up iPhone sales in the remainder of the year. It's not like the airline industry or services industry where people who were going on trips during vacation time are going to be able to make up for lost flights or reservations. That time is gone and never returning.

Anyone who intended to buy an iPhone will be able to get one after it's made and that's just going to be a minor delay for Apple to receive that revenue. Sure, Apple stock had to sell-off thanks to Tim Cook appeasing the big investors and telling them about Apple not meeting guidance. Those big investors should have realized that right away without needing to be told. Anyone who watched the news would have known about possible revenue losses across the board with China in a lockdown.

I hope Apple is buying back stock as that will be the only bright spot for Apple and shareholders during this crisis. Apple, unfortunately, will be hit doubly hard by both production and sales but it's just temporary. Any shareholder who has confidence in Apple needn't worry about Apple's stock price recovering later in the year.
 

44267547

Cancelled
Jul 12, 2016
37,642
42,491
I guarantee Apple has no specific concerns about their manufacturing/production levels, they realize there is a higher importance to allow this situation to take it’s course to fully subside. Apples financial status might have some limbo, but no long-term effect that they can’t make up for.
 
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