The Coronavirus outbreak continues to cause supply issues for technology companies as Apple’s next low-cost iPhone supply is likely more delayed. Apple originally planned to start mass-production of the devices in February but now it has been delayed well into late March.
Apple was reportedly planning to hold a press media event for the launch of the iPhone SE 2, with the phone likely to go on sale from later that week on April 3rd. However, the outbreak of the Coronavirus is still affecting supply chains as production struggles to meet the orders and demands.
Apple had initially instructed suppliers to manufacture nearly 80 million iPhones, of which 15 million devices would be the cheaper iPhone. However, with supplier chains currently working at around 30% to 50% capacity, it is highly unlikely Apple will be able to achieve its target. Suppliers are facing multiple issues like labor shortages to logistics transportation.
The uncertainty in whether the Coronavirus is under control or not is putting another wrench in Apple’s forecast for the first quarter of the year. Apple is lowering its revenue forecast for the quarter to better reflect the reduction in supply and it is hoping that the supply delay will not affect its sales strategy for the second half of the year.