A report in the Business Times shows that many Apple partners in Taiwan’s supply chain expect production to stall because of the impact of the coronavirus on consumer demand.
The closure of Apple stores and retail stores around the world is expected to have a major impact on iPhone sales. China’s supply chain was put back into operation in March.
Initially, Apple caught up with demand when it closed its production facilities in February.
However, the Business Times report shows that the backlog of orders has been resolved and will soon be reduced. The report says some factories have cut orders and suspended hiring of new workers.
China is trying to kick-start its economy as lockdown sparks, and the country’s worst outbreak of the coronavirus is believed to be short thereafter. That should mean that iPhone sales will gradually increase. Apple’s iPhone sales in the region fell 60 percent in February from a year earlier.
Chinese carriers are trying to boost sales by slashing the iPhone 11 series. Apple’s main authorized distributor in China has cut the base price of the iPhone 11 and iPhone 11 Pro Max by about $80, Reuters reported. Last year, a similar discount strategy was introduced when consumer demand for the iPhone XS and iPhone XR was weak.
