An iPhone supply shortage is looming due to coronavirus, says Apple
The outbreak is having more impact on production than first expected
While Apple was fully anticipating its iPhone production to be impeded by factory closures brought about by the coronavirus, the company’s latest investor report warns that the impact is greater than initially expected.
After announcing that Apple is “more than doubling” its donations to help aid relief efforts, the report continues to mention that there is a “slower return to normal conditions than [Apple] had anticipated” and that the company no longer expects to meet the revenue projection it laid out for the quarter.
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There are two major reasons for this. The first factor, and the one most pertinent to the Western market, is that Apple expects that its “worldwide iPhone supply will be temporarily constrained” due to the relevant facilities ramping up more slowly than expected.
The other issue cited is that the demand for the company’s products in general has been diminished across China, and the ability to keep Apple Stores open in the country has been affected.
This is far from an isolated case in the tech industry, with the 2020 Mobile World Congress (MWC) getting cancelled entirely due to a succession of major brands pulling out as a result of the virus.
The Cupertino firm takes great pains to emphasize in the report that any disruption to the business is only temporary, and that the company is “fundamentally strong”, so it remains to be seen how severe any supply shortages may be.
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