Apple’s low-cost ‘iPhone SE 2’ production delayed due to virus outbreak

Apple will likely miss its schedule for mass production of a rumored low-cost iPhone, with “iPhone SE 2” production delayed, while inventories of existing models could remain low until April or longer, despite Chineses suppliers resuming production gradually amid the coronavirus outbreak, Nikkei Asian Review reports, citing “sources familiar with the matter.”

Nikkei Asian Review:

China blocks Foxconn restartApple had previously planned to release a more affordable iPhone this spring to maintain sales momentum into the first half of the year. Mass production was supposed to start by the end of February, but multiple sources say meeting that target is now very challenging and production could be delayed until sometime in March…

“The suppliers are doing their best to produce and ship the [cheaper] iPhone within four weeks. …The delay can’t be too long, otherwise it will affect the sales strategy of Apple’s new products in the second half of this year,” one of the people, who has direct knowledge of the matter, told Nikkei…

The impact of the virus on Apple’s supply chain could be significant in the near term, given uncertainties in the labor force’s return to work and the lean iPhone inventory, JP Morgan Asia Pacific Equity Research said on Tuesday in a note. “However, inventory restocking driven by the demand side could be strong once the virus impact lessens,” it said.

MacDailyNews Take: Apple has along history of unveiling products (see the original iPhone) and letting anticipation build up until release. If “iPhone SE 2” production is indeed delayed, Apple could do the same with this new low-cost iPhone.

1 Comment

  1. Samsung is fortunate to have plenty of production facilities in Vietnam and the company will likely benefit from Apple’s bad luck of having most of its production facilities in China. However, it’s unclear as to whether fewer available iPhones will cause consumers to buy Samsung smartphones instead. It’s not exactly Apple’s fault there was a CoViD-19 outbreak or if any other natural disaster happens. Sometimes you’re lucky and sometimes you’re not.

    As an Apple shareholder, I’m not concerned about Apple’s long-term prospects. I’m also not concerned about quarter to quarter results when Apple can possibly recover any losses over the entire year if their product lineup is desirable to the masses. I’m surprised analysts are quickly lowering price targets based on near-term results as I thought analysts set price targets for an entire year. It seems I was wrong about that.

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