This is What Coronavirus May Mean for 2020 iPhones

Since the coronavirus outbreak started in the last quarter of 2019, China’s economy and production has been under attack by this virus. This forced businesses to shut down, freeze production and even lay off workers to slow down or put a halt to the spread of the virus.

How Coronavirus is affecting the world’s economy

If the coronavirus plunges the world into recession, China may be the biggest reason. Economists caution that its shutdown threatens the economies of Japan, South Korea, Europe and even the United States. Huge corporations have begun to see the impacts of thiy spreading virus.

One of the Huge Corporations feeling the heat of this health pandemic is Apple. Apple’s iPhone sales are taking a hit in China due to the ongoing coronavirus situation. In an investor note from 24th of February, 2020, UBS analysts estimate that iPhone sales fell 28% during January. Qorvo, maker of radio frequency chips for iPhone, is the latest to issue an investor warning for the current quarter due to the coronavirus.

Coronavirus versus Apple

Unfortunately, Qorvo expected revenue to come between $800 million and $840 million for the March quarter but reduced that guidance to $770 million. Qorvo said coronavirus outbreak has affected the smartphone demand and supply more than expected. The tech company also warned the full impact of the virus “remains difficult” to forecast. 

Qorvo’s ultrawideband wireless technology, which it acquired through its acquisition of Decawave, is used in the iPhone 11 for its AirDrop capability. Qorvo’s chips seem to be in the lower-cost iPhone to be launching this spring. With the cheaper iPhone, Apple is going after a market that wants the processing power without all the bells and whistles. It’s not clear if the warning out of Qorvo will have any impact on the launch date for that device known now as the iPhone SE2. 

Any hope?

Foxconn, the main assembler of Apple products expects to resume normal production by the end of the month. This is after the coronavirus outbreak forced it to close factories in China in late January. Like other manufacturers in mainland China, Foxconn has struggled to get factories up and running again. In an effort to contain the virus, millions of people across China remain under travel restrictions. Requirements to resume factory operations vary according to local governments. As a result, Foxconn’s plants are short on workers and key components.

We do hope the outbreak does not spread further and a cure found and wish Apple the very best.

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