The coronavirus outbreak is expected to impact Apple’s business as well, and this is likely to happen not only in China but at a global level too.
First of all, the company has recently confirmed that it would close all Apple Stores in China through February 9, with the online store to remain the only place where customers can continue to purchase devices.
“Out of an abundance of caution and based on the latest advice from leading health experts, we’re closing all our corporate offices, stores and contact centers in mainland China through February 9. Apple’s online store in China remains open. We will continue to closely monitor the situation and we look forward to reopening our stores as soon as possible,” Apple says in a statement for Bloomberg.
Q1 iPhone sales decline
Apple analyst Ming-Chi Kuo believes that the iPhone supply is also hit by coronavirus, so he estimates shipments in the first quarter of the year to drop by approximately 10 percent. Apple, Kuo says, should now sell between 36 and 40 million iPhones in this quarter.
Furthermore, anticipating iPhone sales in the second quarter is much more difficult now, as the long-term impact of coronavirus on the supply chain is difficult to predict given the outbreak.
But on the other hand, the debut of the iPhone 9, or the second-generation iPhone SE, is unlikely to be affected by coronavirus.
Foxconn, which is in charge of manufacturing the new affordable iPhone, says it already has a backup plan to avoid any disruption in the production process, so the device should launch normally in the spring. According to people familiar with the matter, the new iPhone could see daylight in March or April the latest.
iPhone 9 will be based on the existing iPhone 8, and it’ll feature a 4.7-inch LCD screen with a home button and integrated Touch ID. Pricing is expected to start at $399 for the base model.
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