Coronavirus outbreak might disrupt Apple’s iPhone manufacturing ramp up plans: Nikkei


(Reuters) – Apple Inc’s (AAPL.O) plan to ramp up iPhone manufacturing by 10% within the first half of this yr might hit a roadblock because the coronavirus outbreak spreads throughout China, the Nikkei Asian Evaluate reported on Tuesday.

FILE PHOTO: Apple’s new (L-R) iPhone 11 Professional Max, 11 Professional and 11 are displayed after they went on sale on the Apple Retailer in Beijing, China , September 20, 2019. REUTERS/Jason Lee

The corporate has requested its suppliers, a lot of whom have manufacturing facilities in China, to make as much as 80 million iPhones within the first half of 2020, the Nikkei reported, citing folks aware of the corporate’s plans. (

Apple has booked orders for as much as 65 million of its older iPhones and as much as 15 million models of a brand new cut-price mannequin that it plans to unveil in March, based on the report.

Nevertheless, the mass manufacturing which is because of begin within the third week of February is perhaps delayed because of the virus outbreak, the Nikkei reported.

The coronavirus outbreak has to date killed greater than 100 folks and contaminated over 4,500 in China, stranded tens of thousands and thousands in the course of the Lunar New 12 months vacation and rattled world markets.

Apple’s shares rose about 86% in 2019, outperforming a 29% rise within the S&P 500 index. The inventory closed down almost 3% at $308.95 on Monday as coronavirus fears dragged down high-flying U.S. chip and know-how shares.

Cupertino, California-based Apple, which raked in additional than $142 billion in iPhone gross sales in fiscal 2019, has launched decrease priced smartphone variants to woo price range acutely aware buyers and test declining gross sales of its largest product class.

Final October, Nikkei reported that Apple requested its suppliers to extend manufacturing of iPhone 11 fashions by as much as eight million models, or about 10%, hinting that demand for the just lately launched variations of its flagship telephone was choosing up.

The iPhone maker is ready to report its first-quarter earnings after markets shut on Tuesday.

Apple didn’t reply to a Reuters request for remark.

Reporting by Subrat Patnaik and Roshan Abraham in Bengaluru; Modifying by Shounak Dasgupta


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