Reuters: Coronavirus Outbreak Expects To Strike iPhone Production Rate

Reuters  has published an article noting the importance of Chinese factories to Apple. The publication stated that if the Foxconn closes due...

Reuters has published an article noting the importance of Chinese factories to Apple. The publication stated that if the Foxconn closes due to coronavirus is extended for another week, it would hit Apple's supplier Foxconn's overall iPhone production rate.


As a result of the outbreak, almost all of Foxconn's current production can only begin on at earliest February 10, and it may be extended again for employee safety. Apple's main partners in the supply chain are also waiting to see whether to extend the resumption time.

According to a person familiar with the matter, Reuters suggested that if this happens, Foxconn's supplies to Apple will be interrupted. If Foxconn had to stop working for another week, Apple would not be able to maintain normal iPhone supply worldwide due to tight supply. Up to this point, Foxconn's factories in countries such as Vietnam, India and Mexico have tried to correct this void. To date, the impact of the outbreak is still minor. If the Foxconn plant works overtime later, it can also compensate for losses due to delayed working hours.

Foxconn currently requires employees to report their health status to management on a daily basis. The company has confirmed that workers who comply will be paid as usual.

Some few days ago, in order to avoid crowds of people and increase the possibility of contamination, Apple closed all Apple stores in China. This will lead to a decline in overall iPhone sales in China. Ming-Chi Kuo, a well-known analyst yesterday, believes that Apple's iPhone shipments will decline by 10% in the first quarter of this year.

Such data will also be reflected in the financial report. After the financial report was released a few days ago, Apple estimates that this quarter's revenues will range from $62 billion to $67 billion. Luca Maestri, Chief Financial Officer of Apple, said the confusion caused by coronavirus is the explanation for a broad spectrum of revenues. Apple's stock price hit a record high last week. But as investors are worried about the impact of the corona virus, Apple's stock price is currently down about 3.5 percent.

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Loveios: Reuters: Coronavirus Outbreak Expects To Strike iPhone Production Rate
Reuters: Coronavirus Outbreak Expects To Strike iPhone Production Rate
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