Suppliers are confused, Apple reported that iPhone production will increase by 4% during the outbreak

The new coronavirus (COVID-19, commonly known as Wuhan’s pneumonia) is rampant and global smartphone demand may be affected by it, falling into a recession. However, in this context, Apple has been informed to the provider to inform to the supplier that the iPhone will increase production by 4%. Suppliers are deeply confused and concerned that future production estimates may be revised downward.

Nikkei reported on the 21st that Apple informed several vendors that iPhone production from April 2020 to March 2021 is expected to increase by 4% annually to approximately 213 million units, of which the old and new models (Including the new iPhone SE just released and the expected release of new models with 5G models this fall) Estimates are half.

The report noted that due to pneumonia in Wuhan and the global demand for smartphones may be reduced, doubts among providers about the iPhone production increase plan in this context are spreading.

A table from a parts company noted, “This is a very strong estimate, but it needs to be confirmed if this is realistic real demand. We believe it can also be reduced by 10-20%.” “It may be to prevent out of stock during the fall or Christmas period, so we need to build more products, but when can we adjust it later?”

According to reports, Apple will formally place orders for various parts suppliers from May to June, but Apple has also revised its estimates several times in the past, so if the epidemic cannot end, Apple may revise its production estimates.

Apple fell 3.09% on 21st to close at $ 268.36.

Japanese media reported on the 18th that US Goldman Sachs. USA He calculated that due to the Wuhan shutdown caused by Wuhan pneumonia, Apple’s iPhone shipments from April to June 2020 are expected to be 36% lower than in the same period last year. From January to June 2020, it is estimated that it will decrease by 24%. Goldman Sachs estimates that iPhone shipments will drop to 2% from October to December 2020.

Reuters cited on the 14th, according to data from the China Information and Communication Research Institute (CAICT), Apple’s iPhone shipments to the Chinese market in March 2020 were approximately 2.5 million units, a four-fold increase from the approximately 500,000 units in February.

(This article is reproduced with permission from MoneyDJ News; first image source: Apple)