The coronavirus pandemic has rocked the global capitalistic system and it is forcing companies to make some difficult decisions.
According to Nikkei, sources say that Apple is preparing a possible delay of the launch of its first 5G iPhones. this is due to the coronavirus pandemic which has threatened global demand and has disrupted the company’s development schedule.
Apple has apparently held internal discussions on the possibility of delaying the launch by months. Supply chain sources told the publication say that the hurdles could push back the release, which is usually scheduled for September.
“Supply chain constraint aside, Apple is concerned that the current situation would significantly lower consumer appetite to upgrade their phones, which could lead to a tame reception of the first 5G iPhone,” a source told the publication.
US and Europe are two of their largest markets who account for more than half of its sales and Apple is monitoring the outbreaks in these regions.
Apple wants to catch up to the likes of Huawei and Samsung who already have 5G smartphones. Apparently they had set a target of 100 million units for 2020 and 4 devices for their mobile suppliers. This is seen as a strong move for them so as to not appear to be slacking in the 5G race.
Usually, suppliers are told to start shipping in big volumes in June but apparently right now they have been told to start shipping by the end of August.
“Apple will make a final decision around May at the latest, given the fluid situation globally,” another source told Nikkei.
Apple delaying the launch of the new iPhone from the usual September release could have several effects. This means that their usual Q4 results which fit well with their new iPhone release will have a significant drop in revenue year on year. Apple made almost $92 billion in revenue in Q4 last year.
