It’s unlikely that Apple will delay 5G iPhone launch, longtime Apple analyst Gene Munster explains for Loup Ventures.
The Nikkei Asian Review this week reported that Apple “is preparing the ground to possibly delay the launch of the first 5G iPhones… with a worst-case of delaying the launch until 2021,” due to engineering and supply constraints from the COVID-19 coronavirus pandemic. Loup Ventures’ Gene Munster has a different view. Munster believes it’s likely Apple will have their fall iPhone launch as usual.
We estimate that it typically takes 3-4 years to take an iPhone from concept to launch. That implies that by the end of March in a given year, the vast majority of work on an iPhone design and planning with the supply chain is already done.
China manufacturing and assembly, including some of Apple’s most important partners like Taiwan Semiconductor (TSMC), are beginning to ramp production. Taking the view that China production will remain stable (which can quickly change), the supply chain should be positioned to supply several million iPhones by the end of September, in line with supply for previous launches.
MacDailyNews Take: In addition to explaining that it’s unlikely that Apple will delay their 5G iPhone launch, Munster reminds readers (and current and potential investors) that Apple holds major competitive advantages including “the company’s balance sheet, which allows it to survive the unexpected; everything from COVID-19, to a financial crisis, or weak initial demand for a new iPhone.”
Cash is king and the king of cash is Apple… As difficult as it may be to believe sometimes, this too shall pass. — MacDailyNews, March 21, 2020