US, WASHINGTON (NEWS OBSERVATORY) — The output of the long-awaited fifth-generation (5G) enabled iPhone may be delayed due to a coronavirus outbreak, Bloomberg reports citing Bank of America.
Expert Elliot Lan wrote that “iPhone 5G launch may happen in the fall for a month”, and iPhone SE2 launch will be delayed “for several months” due to “supply problems, as well as due to weaker market conditions demand due to COVID-19.”
Wamsi Mohan, an analyst at Bank of America, believes that the launch dates for upcoming models will “depend on how production resumes in April and May.”
Apple shares on Friday fell 3.8% in premarket trading. Shares fell more than 10% from a record close in February. Analysts are concerned about the impact the epidemic could have on Apple’s supply chain, as well as sales.
Also on Friday, Deutsche Bank lowered its price for Apple shares to $ 295 from $ 305, citing “significant uncertainty” associated with the outbreak of the virus.
Earlier this week, iPhone maker Hon Hai Precision Industry Co. (Foxconn) said its Chinese plants will begin operating normally by the end of March. Foxconn is gradually returning employees to jobs after compulsory quarantine, which must be ensured after the New Year holidays at the request of the government.
To date, more than half of the seasonal employees at Foxconn’s Chinese facilities have already returned to work after a coronavirus outbreak.
Currently, more than half of seasonal employees have returned to work. Foxconn chairman Liu Jung-wai said the company had no big problems in the supply chain and that Foxconn was helping suppliers resume work. However, Foxconn said it could not predict the actual impact of the outbreak on its financial results for the year.
Insiders in the supply chain say Foxconn is trying to launch a new generation of Apple iPhone smartphones, but earlier deadlines are at risk due to travel restrictions.
The aftermath of the epidemic is especially painful for Apple, as China has concentrated the core capabilities of its manufacturing partners. Apple has already warned that the COVID-19 outbreak will adversely affect the company’s revenue. Analysts at Needham & Company believe that the situation with demand and supply can only normalize by June 2020, which is two months later than previously expected.
In general, electronics manufacturers expect product shipments to be delayed by an average of five weeks due to the COVID-19 virus, according to a recent IPC study. Factories in China are central to the supply of the electronics industry, and manufacturers are increasingly worried that coronavirus disruptions could delay production for several weeks.
Bank of America recommends buying stocks at a lower price, the closest price target for Apple stocks was $ 350 due to the large stock of cash, as well as the arrival of 5G, when smartphone users are expected to want to change their old gadgets.
According to rumors leaked in the media, the new iPhone will be equipped with a camera with a 64 MP main sensor, night mode support will be added to the telephoto lens, and the wide-angle will receive an aperture increased by 35% – f / 1.6. In addition, the focal length will be improved, which will allow you to take photos in macro mode.
Since the 5G connection in the iPhone 12 consumes much more power than LTE, a 4400 mAh battery will be installed in the flagship smartphone. The iPhone 11 Pro Max had a 3969 mAh battery. But all of this we will see only in the fall, but for now the closest date for the announcement of new “apple” gadgets is the end of March.
That’s when the presentation of the iPhone 9 (iPhone SE 2) is expected, which will receive the design from the old iPhone 8, but the technical specifications from the current iPhone 11. However, the coronavirus can break all Apple plans. So far, one after another, large technology conferences have been canceled, at which there are usually many interesting announcements.
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Article is written and prepared by our foreign editors from different countries around the world – material edited and published by News Observatory staff in our US newsroom.