Apple is expected to release several new products in the Spring. Despite the brand announcing a cautioned sales outlook for its current fiscal quarter, the launch of a new iPhone and new iPads may still be on track. Still, Apple may struggle with production delays due to the coronavirus, which has been a major health concern in recent weeks, especially in China.
Apple’s original second-quarter guidance set revenue between $63.0 billion and $67.0 billion, which it hoped would be propelled by a low-cost iPhone, likely called the iPhone SE 2 or the iPhone 9, according to Bloomberg. The device is expected to have a design similar to the iPhone 8 and be powered by the most recent A13 chip, with a price tag around $400. However, a considerable amount of Apple’s business in China has been halted due to the extremely contagious Covid-19 virus. Suppliers are said to be working at 30 to 50 percent of its usual volume, with little hope for catch up.
Apple works with the Foxconn Technology Group on a major chunk of its international production. The Taiwanese manufacturing company hosts a considerable amount of its production factories in Zhengzhou, China and reportedly just began recruiting staff for iPhone 9 production on Monday, when production was set to begin in early February.
Several Chinese provinces have been subject to quarantines of up to 14 days to adhere to the incubation period of coronavirus. Foxconn barred workers from returning to work following the Lunar New Year holiday in late January. Similarly, the 42 stores in China have been closed for several weeks and higher profile locations have only recently opened for business once again.
However, experts believe the delays may only affect Apple in the short term. “Sales of Apple’s products remain strong outside of China, and this slowdown does not mean less demand for Apple products inside of China – it simply delays that demand to later in 2020,” GlobalData Principal Analyst, Lynnette Luna said in a statement. “Moreover, Apple’s most recent quarterly results were strong. It can weather a temporary slowdown.”
There are rumors circulating that Apple may host a launch event on March 31 and that the iPhone SE 2 / iPhone 9 could release to market April 3. These rumors have not bee confirmed, but many believe them to be valid due to Apple’s supposed production strategy for this smartphone. The brand is expected to use primarily old components on the budget iPhone in order to keep its price low.
Apple may forgo using a 7-element plastic (7P) for the device’s rear camera, and may instead use the 6P rear camera lens that originated on the iPhone 8, according to famed analyst Ming-Chi Kuo. This may be enough to get production going while Apple prepares for a supply come back later in the year.
Apple is also rumored to be developing a new 12-inch iPad Pro with a new camera system; however, that device may face even more production delays than the upcoming iPhone.