The recent outbreak of coronavirus not only prevents travelling to and from significant parts of China, but it is also expected to impact the global consumer electronics industry-which is heavily dependent on the region. Senior Apple analyst Ming-Chi Kuo posted a new research note forecasting that Apple’s supply chain could be disrupted by the current coronavirus outbreak, impacting iPhone shipments directly in the first half of 2020. Apple had recently shut down its Chinese retail outlets as the nation fights the Novel Coronavirus outbreak.
As seen by Apple Insider, Kuo said in his latest research note that total smartphone shipments would drop in China, which will also’ hurt’ Apple. The supply chain of the tech giant in China will also impact the overall dispatches of the business. Kuo further added that Apple’s products would face production risks due to the outbreak of coronavirus, as some factories will remain temporarily closed.
Kuo’s latest research note claims smartphone shipments on the Chinese market will decline to a little over 310 million by 2020 by 15% year-on-year. Because of the current coronavirus outbreak in China, the analyst blames it for’ negative impacts on consumer confidence.’
Besides, Kuo further states that the coronavirus outbreak affects the availability of the iPhone, resulting in a decrease in iPhone shipping estimates in the first quarter of 2020 by up to 10 per cent.
Regarding travel restrictions in place, Apple employees will not be able to visit suppliers in China to check goods and other issues related to the operations. This could potentially postpone products which could also be in the pipeline later this year.
Apple has closed all of its mainland China offices and retail outlets until February 9th. Apple supplier Foxconn had earlier stated that despite the country’s novel coronavirus outbreak, it plans to continue to work towards fulfilling all of its development obligations. Apple won’t be the only company; however, due to the coronavirus outbreak, many Chinese phone brands will also be affected.