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iPhone production impacted by coronavirus outbreak

The ongoing viral outbreak is starting to have an even broader impact with further production delays likely.

As the extended Chinese lunar holidays come to an end, the coronavirus has caused major problems for Foxconn, Apple's main manufacturing facility for iPhones.

According to the Financial Times, problems with housing in relation to the quarantine of workers have stopped access from outside the city. The report also states that Henan provincial officials confirmed on Monday that companies had to "strictly protect against the virus entering and spreading" and "step up oversight of workplace virus-control measures".

As the self-quarantine period is 7-14 days, Foxconn has had massive problems manning the production line.

The limited production capability has already lead to Apple warning investors that "iPhone supply shortages will temporarily affect revenues worldwide" as Apple doesn't stock huge quantities of phones in order to avoid wasting money on devices laying around for a long time in warehouses, but as several financial media have reported, this does amplify the damage done when production is not running at full capacity.

While there is a consensus that production will only suffer 10-15%, the time frame of the problem is up for debate, with the most positive predictions being the first quarter of 2020 only, while other foresee that not only the workforce but also components will be in demand for a very long time.

iPhone production impacted by coronavirus outbreak


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