Factories producing goods of famous IT-companies have stopped in China. Among them was Foxconn, which creates products of Apple, and factories of South Korean Samsung. The reason is directly related to the large-scale spread of Coronavirus 2019-nCoV. Initially, the terms of forced quarantine were set for a couple of weeks, but if the epidemic is prolonged, they can be increased.
The Chinese government has initiated the suspension of some industrial plants located near the city of Wuhan, which is considered the main center of the virus’s spread. Plants producing products by well-known companies are located in the industrial zone. The distance between this area and Wuhan is about 500 km.
The AppleInsider, which tells about the products of Apple, suggested that the Chinese virus can greatly affect the business of the corporation around the world. Extension of the quarantine for an even longer period of time could disrupt the originally planned schedule for the supply of iPhones and other gadgets. A company typically launches production of Macs and iPads a couple of months before their presentation, and production of iPhones begins 90-120 days before the official premiere.
Thus, a temporary shutdown of Chinese factories may break the official Apple event, which is expected in March. As part of the presentation, the company, according to insiders, wanted to announce the Apple smartphone model SE 2 along with other devices. In addition to disrupted supplies, the Coronavirus may affect Chinese sales of already produced “apple” gadgets, which have already fallen. According to the results of 2019, the demand for Apple products in China, if you look at the sales volume, decreased by 35%. Apple Insider suggests that the spread of the virus in the country may further reduce sales, as the number of customers in the corporation’s offline stores will decrease.
The duration of the quarantine may affect Apple’s expected new products in 2020, which will be released later than usual. Thus, the announcement of the next line of new smartphones with the preliminary name of iPhone 12 is scheduled for September, so their commercial release should begin in June-July 2020.