Tuesday, 28 April 2020 09:09

Apple to delay ramp-up in iPhone production by a month: report Featured

Apple to delay ramp-up in iPhone production by a month: report Image by Welcome to all and thank you for your visit ! ツ from Pixabay

Mass iPhone production in China, which normally occurs just before Apple announces its line-up of devices to be released in September, will be delayed by about a month, The Wall Street Journal reports, citing people familiar with the company's plans.

Last month, the Nikkei Asian Review quoted some iPhone component makers as saying that they had been told to delay mass production schedules by two to three months.

The volume produced would be down by about 20%, the report added. But a 21 April report in the Nikkei said Apple had told suppliers it intended to make about 213 million iPhones in the year to March 2021, an increase of about 4% on the number a year prior.

The WSJ said four new iPhone models, some 5G, would be released this year, in three sizes, all with OLED screens.

Apple is one of the few major smartphone manufacturers that is yet to release a model that supports 5G and the company is said to have planned for 100 million devices supporting the technology to be made this year.

The March Nikkei report said a final decision would be taken in May, though the WSJ report appears to indicate that plans have been finalised.

South Korea's Samsung Electronics and China's Huawei Technologies, Apple's two main rivals, have both released 5G models.

Smaller companies like OPPO and LG have also released 5G models, with the former, a part of BBK Electronics, having launched two 5G phones.

Prior to the coronavirus pandemic, Apple appeared to be confident with its own delay, given that iPhone users are extremely loyal to the brand.

Apple is heavily dependent on Chinese companies for iPhone production. In February, the company warned of a global shortage of the devices due to the COVID-19 outbreak, its second earnings guidance in the second quarter, saying it would not be able to meet its quarterly revenue target of US$63 billion to US$67 billion (A$93.8 billion to A$99.8 billion) due to the shortage of iPhones and a drop in China sales.

Apple had already issued guidance on 29 January about its revenue targets.

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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