Premium phone manufacturer Apple is likely to delay the launch of its low-cost iPhone 9 which was earlier scheduled to be out in March, a report by Nikkei Asian Review revealed.
Premium phone manufacturer Apple is likely to delay the launch of its low-cost iPhone 9 which was earlier scheduled to be out in March, a report by Nikkei Asian Review revealed. The information came a day after Bloomberg reported that the launch would take place as per the earlier set timeline. The company was supposed to start mass production of its phone in February, however, it has become challenging for the company to meet the targets. Therefore, the production is likely to be delayed until March, the report said.
Apple planned to introduce a low-cost iPhone as its sales suffered a major slump in the Chinese market. The company is also struggling with the inventories of its existing models. The suppliers are also struggling due to the coronavirus outbreak and the production will likely be resumed slowly. The company had earlier asked the suppliers to produce 80 million units of iPhones which also included 15 million units of the low-cost iPhone 9 for the first half of 2020. As this plan became uncertain, Apple has also lowered its revenue forecast this week. The report also cited some officials and stated that the suppliers are doing their best to get the new iPhone ready in the next four weeks. The company is expecting the delay to not extend as it could then affect its sales strategy.
According to the report, the suppliers are operating at 30 per cent to 50 per cent of their capacity and constraints might extend to April. With the coronavirus outbreak, production is uncertain in China, however, the employees are expected to resume work next week as the quarantine period expires for some of them.
One of the biggest concerns the suppliers have as of now is how to ensure that their plant is not affected by the virus. They are also trying to resolve labour shortage and stuck components and parts due to travel restrictions. Logistics is tough in China at the moment as cities are being held under quarantine and road travel has become difficult.