iPhone Production May Not Improve Before Q2, Says Ming-Chi Kuo

Renowned TF Securities analyst, Ming-Chi Kuo, has claimed that supply-chain disruptions because of the coronavirus outbreak volition continue to take a negative affect on iPhone production during the current quarter. According to his latest inquiry annotation, product will only improve during the second quarter of 2020 when near of the shuttered factories are expected to start running once over again.

The endmost of the LG Innotek manufacturing plant in South korea is believed to take hit Apple particularly hard because the company supplies camera modules for the iPhone. Shipments from iPhone camera lens supplier Genius Electronic Optical has besides fallen significantly over the final calendar month, said Kuo. According to him, there is nearly a month of stock still available, but production is only expected to restart by May at the primeval.

With Apple'southward supply chain in China being badly affected by the coronavirus outbreak, the US tech giant has already been shifting at to the lowest degree some of the iPhone production over to Taiwan to reduce further disruptions. Still, that may not assistance the company from recording a meaning dip in sales during the current quarter, with the visitor already reducing its earnings estimate considering of the ongoing crisis. The tech industry equally a whole has been impacted heavily due to the virus, with almost every major event being cancelled or postponed as a precautionary mensurate confronting the virus.

The ongoing CoVID-xix crisis that is believed to have originated in the urban center of Wuhan in China terminal Dec, has started to assume global proportions with hundreds of people already confirmed to take been affected in Republic of korea, Iran and effectually the world. The US also reported its first coronavirus-related death over the weekend, and so information technology remains to exist seen how the authorities and medical practitioners will get a grip on the situation going forward.