Apple Suppliers Wary About iPhone 12 Demand Amid COVID-19 Concerns

Earlier this week, Nikkei reported that Apple was considering delaying the release of iPhone 12 for several months. Now, Reuters is out wit...

Earlier this week, Nikkei reported that Apple was considering delaying the release of iPhone 12 for several months. Now, Reuters is out with a report stating that despite the fact that Apple's supply chain in China has largely stabilized, suppliers are still worried about the iPhone 12 demand and deferral.

One of Apple's major display suppliers, for example, is preparing for a similar level of contraction, says a person familiar with the matter. The company originally expected to ship 70 million iPhone displays this year, but is now considering reducing this target by more than 17% to 58 million.

An executive from Apple's supply chain said that mass production of the iPhone 12 has been delayed. Of course, Apple could still opt to release the iPhone 12 in the fall, however, there might very well be a limited availability, as the problem now is not the capacity issue, but rather Apple is concerned that due to the pandemic, customer demand for the new iPhone will decrease.

"No one is talking about manpower or material shortage (in China) anymore. Now everyone is looking at whether demand from U.S. and Europe could keep up," said the person, who has direct knowledge of the matter. "The focus now is the demand from consumers in the U.S. and Europe."

Lately, there have been a number of rumors on whether the iPhone 12 will be delayed. Apple seems to not have completely determined whether to delay it. It all depends on the development of the outbreak.

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