Apple Delay Flagship iPhone Production
iPhone manufacturer, Apple, is reportedly delaying the mass production of its 2020 flagship smartphones by around a month, following economic and supply chain impairments from the COVID-19 pandemic.
According to WSJ, the Cupertino tech giant is forging ahead with plans to debut four new iPhones this year, comprising three sizes; 5.4-inches, 6.1-inches and 6.7-inches. Some devices are tipped to feature OLED screens and 5G connectivity.
The news comes after Wall Street investment bank, Goldman Sachs, downgraded Apple shares following weaker than expected market sales forecasts.
iPhone sales are a major contributor to Apple earnings, and historically have accounted for over half of the company’s total revenue.
2020 iPhones will be Apple’s first to feature 5G connectivity, with investors hoping it will prompt a jump in replacement demand in existing owners, following sluggish sales last year.
Traditionally, Apple unveils new iPhones in September with shipping later that month. Suppliers will reportedly commence building in July – September, however, a ramp up in mass-production will be delayed by around a month versus previous years.
Commentators suggest Apple may even hold its annual iPhone unveiling event in October, a month later than normal.
WSJ sources claim Apple is planning to cut the number of handsets produced in the second half of this year by as much as 20%, which may or may not be pushed into 2021.
Market watchers remain optimistic. asserting there’s little to worry about unless Apple misses shipping new iPhones before the lucrative 2020 holiday season.
It’s not the first time Apple has delayed new iPhone shipments, with the iPhone X going to sale later in the year versus the iPhone 8.