Ming-Chi Kuo believes that iPhone production will not improve until the second quarter of 2020. iPhone production has been hampered due to the coronavirus outbreak in China which has led to many factories shutting down in the region.
While Foxconn has resumed work at some of its iPhone factories after an extended New Year holiday, they are still not working at their full capacity. Apple has also been forced to move production of some of its key products outside of China to its other supply-chain partners.
Shipments from iPhone camera lens supplier Genius Electronic Optical has fallen significantly over the last month as supplies dwindle. The analyst estimated that there is about a month of stock still remaining, with full-fledged production only starting by May at the earliest.
Apple has issued revised guidance for Q1 2020 and reduced its earnings estimate for the quarter due to the virus. It noted that the iPhone supply worldwide will be temporarily constrained and will affect its revenues. iPhone sales are expected to decline by 10% in Q1 2020 due to the virus. Despite the coronavirus outbreak, Kuo believes that Apple is still on track to launch the iPhone 9 towards the end of Q1. The device might be in short supply for a few weeks after launch though.
As for the iPhone 12 series, Kuo said that it will retain the same ultra-wide lens design as the iPhone 11. The coronavirus outbreak is not expected to impact the launch of the iPhone 12 series later in the year for now, though a lot depends on how things play out over the coming months.[Via MacRumors]