Even the month of April could prove to be a difficult month on the iPhone supply front due to problems related to the notorious Coronavirus that is scourging China.
The Chinese government’s efforts to stem the rampant epidemic have led to a significant reduction in the Chinese factories’ productivity, and despite the efforts of Apple suppliers, it is still not possible to resume productivity at full capacity. According to a new report published by Nikkei, productivity would now orbit between 30% and 50% compared to the maximum production regime, with a consequent reduction in the number of units placed on the market.
Again according to the report, it is therefore permissible to expect various problems also in April, because of the strong operational shortage both in the purely productive and in the logistics sector. From Monday, part of the employees of the Chinese factories should return to work when the Chinese government lifts the quarantine period imposed, intending to recover as far as possible the backlog and return to full operation in the shortest time, therefore, avoiding companies to review their operational plans for the current year.
In March, Apple is expected to launch a new iPhone SE 2 and to overcome supply problems, the Cupertino-based company would have moved part of its production to Taiwan, although sales estimates have already been revised downwards precisely because of production difficulties of suppliers. We just have to follow the evolution of the situation to understand when the coronavirus emergency will finally be under control, allowing production to resume in its usual rhythms.