Daily Management Review

Apple to increase iPhone production by 10% in the first half of 2020


The American corporation Apple asks suppliers to increase production of iPhone smartphones in the first half of the year by about 10% to 80 million units, while suppliers fear the possible impact of the new coronavirus from China on production plans, the Nikkei Asian Review reported citing sources.

"Apple asked its suppliers to manufacture up to 80 million iPhone smartphones in the first half of this year ... The company ordered around 65 million older iPhone models, mainly the iPhone 11 series, and up to 15 million pieces of a new budget model, which is scheduled for release in March," - the publication reads. For the same period in 2019, the company ordered about 73 million iPhones. The company also intends to increase the production of AirPods wireless headphones, according to newspaper sources.

At the same time, suppliers warn that the outbreak of coronavirus, which began in the Chinese province of Hubei, may complicate plans to increase production. The main production centers are located in neighboring Henan and the coastal Guangdong, adjacent to Hubei, where more than 100 cases of infection have already been recorded.

On December 31, 2019, Chinese authorities informed the World Health Organization about an outbreak of unknown pneumonia in the city of Wuhan, located in the central part of the country. Experts have identified the causative agent of the disease, the 2019-nCoV coronavirus. According to the latest data, the number of people infected with a new type of coronavirus in China grew up to 4,515; 106 of them died.

Markets are awaiting Apple's first quarter reporting fiscal year 2019-2020 on Wednesday night. According to analysts, over the three reporting months, sales of the corporation rose to $88.38 billion from $64.04 billion in the fourth quarter.

In October last year, sources reported that Apple plans to increase production of the iPhone 11 by 10%, or by 8 million units, amid strong demand. In November, the publication wrote about the company's intention to double the production of wireless headphones for the latest AirPods Pro model in China, as well as increase production of cheaper AirPods in factories in Vietnam. 

source: asia.nikkei.com