The coronavirus pandemic is wreaking havoc on economies and industries all over the world. Not only can companies not sell their wares due to lockdowns, but future development has also been curtailed. Ever more reports are surfacing pointing to the likelihood that Apple’s troubles will be felt with the launch of their 2020 iPhones.
The first 5G iPhones were already expected to be pushed back several weeks, but even that timeline seems to be under threat. Due to supply shortages and resourcing issues, the mass production of the 2020 iPhones has now been pushed back by at least a month. Not only that, Apple has also ordered 20 percent new phones for the second half of 2020, according to The Wall Street Journal.
The yearly production run on the new iPhone is of critical importance to Apple’s bottom line. The 2020 iPhones were slated to be more important than ever with the inclusion of 5G in an Apple product for the first time. The iPhone makes up more than 60% of Apple’s revenue, so a big delay in producing and selling these devices will lead to much lower profit numbers for investors in 2020.
Of course, these kinds of delays are basically unavoidable at this point. Countries around the world that produce the raw materials used in smartphone production has been shut down to shelter from the spread of the virus. So, even if China is fully opened up again in time (where most of the production takes place), getting the materials to the production line is a big problem. Other processes, like testing and sampling, can’t be rushed.
Because of the worsening world economy, the demand for Apple products will unilaterally be down, because of their hefty price points. Perhaps the launch of the 2020 iPhone SE came at exactly the right time, but they are also struggling to manufacture as many of the cheaper iPhones as they need.
Luxury products like expensive electronics will be the last priority for many more people in 2020 and the industry will suffer. Here’s hoping that consumers are still treated to a swath of interesting and compelling products as the year progresses and we recover from this unprecedented pandemic.