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Apple iPhone 11 Series Faces Supply Issues Due to Coronavirus Pandemic

Apple iPhone 11 pro and iPhone 11 max hit with supply issues: Report

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Apple iPhone
New Apple iPhones like iPhone 11 Pro and 11 Max are disappearing from retail stores. (Representational Image). Pixabay

New Apple iPhones like iPhone 11 Pro and 11 Max are disappearing from retail stores — this time due to supply issues appearing after the coronavirus pandemic amid less footfall.

According to KeyBanc Capital Markets Inc analyst John Vinh, Apple’s “iPhone sell-through was adversely impacted by supply issues” due to coronavirus, “particularly on the Pro/Max models and by lower foot traffic in outbreak areas.”

The stores have been running out of iPhones for some weeks now and they have no idea when the new stock will arrive, reports Seeking Alpha. Apple shares were down nearly 5.5 per cent pre-market to $260 on Thursday.

According to an NY Post report last week, wireless retailers have either run out of stock or are running low on iPhone 11 and iPhone 11 Pro models. “Employees at numerous retail locations around Manhattan contacted by The Post uniformly told the same story of low stock and infrequent shipments,” said the report.

“We got a shipment and it didn’t have any iPhones in it a” just flip phones and Samsungs,” a Verizon store employee on the Upper West Side in New York was quoted as saying. There is, however, cautious optimism that the worst of the “outbreak in China” is now past.

Apple iPhone
Apple shares were down nearly 5.5 per cent pre-market to $260 on Thursday. Pixabay

Factories are beginning to ramp up production slowly, though many are still below normal capacity at this time of year. Apple supplier Foxconn said it is running at about half its normal low-season capacity — this equates to about 25 per cent of full capacity, according to Counterpoint Research.

While factories are anxious to ramp-up production, they’re also being careful that labour-intensive work does not rekindle viral outbreaks. Rumours have also been circulating for several weeks that Apple will delay the launch of the yet to be named lower cost iPhone. This is to be the successor of the iPhone SE, built around the same form-factor as the iPhone 8 series (SE2 or iPhone 9).

“Problems with the launch were initially thought to be because initial volume ramps could be delayed due to Foxconn’s inability to start production,” said Peter Richardson, Research Director, Counterpoint.

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Travel restrictions on Apple’s engineers flying to China to supervise pre-production testing might also be a factor. And if all these were not problematic enough, just holding a launch event at this time is difficult. (IANS)

Next Story

Weakning Demand Caused by Coronavirus Pandemic To Impact Indian Smartphone Market

Some brands like Apple, Samsung, Xiaomi, Realme, OPPO, Nokia HMD and Lava have already set up services on top of the active user base

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Smartphone
Some brands like Apple, Samsung, Xiaomi, Realme, OPPO, Nokia HMD and Lava have already set up services on top of the active user base. Pixabay

More than the supply concerns, weakening demand due the uncertainties brought about by the novel coronavirus is set to impact the India smartphone market the most, according to a projection by market research firm techARC.

During the calendar year 2020, demand is likely to be low particularly during the April-August period. “There can be no qualitative deterministic measurement of the impact done in this situation. There are so many uncertainties around and the situation is impacting both the supply and the demand side of the market,” said Faisal Kawoosa, Founder and Chief Analyst, techARC.

“We expect supply chain to resume in June in India. Thus April and May will be the worst affected months in terms of shipments, be it out of China or in India,” Kawoosa added. What is more worrying is the weakening demand as consumers are now focusing on spending their money only on essentials like food and medicine.

“Only those requiring a smartphone in case of breakdown will be the primary buyers. The elective upgrades and replacements will be at minimal,” said Kawoosa. Supply, including the channels (offline as well as online) should be back to normal in September. This will be fundamentally triggered by ground-up to festive season.

Smartphone
More than the supply concerns, weakening demand due the uncertainties brought about by the novel coronavirus is set to impact the India smartphone market the most, according to a projection by market research firm techARC. Pixabay

But even during the October-December quarter, demand could be lukewarm due to the the macro-economic scenario by then as well as fear of the viral infection resurfacing towards the winter. “Only if, there would be a vaccination available by then at mass scale, the market could see revival, but not at the normal levels,” Kawoosa said, adding that the smartphone industry will have to look at other revenues, especially service-oriented offerings, to offset the gap which will arise due to low sales of smartphones in 2020.

Some brands like Apple, Samsung, Xiaomi, Realme, OPPO, Nokia HMD and Lava have already set up services on top of the active user base.

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“They need to further look for more paying services to narrow the gap between the potential earnings through sale of hardware and the actual revenues they can realise in 2020,” said the report. (IANS)