The company has asked its suppliers, many of whom have manufacturing
centers in China, to make up to 80 million iPhones in the first half of
2020, the Nikkei reported, citing people familiar with the company’s
plans. (
https://s.nikkei.com/2O6wXuq)
Apple has booked orders for up to 65 million of its older iPhones and
up to 15 million units of a new cut-price model that it plans to unveil
in March, according to the report.
However, the mass production which is due to start in the third week
of February might be delayed due to the virus outbreak, the Nikkei
reported.
The coronavirus outbreak has so far killed more than 100 people and
infected over 4,500 in China, stranded tens of millions during the Lunar
New Year holiday and rattled global markets.
Apple’s shares rose about 86% in 2019, outperforming a 29% rise in
the S&P 500 index. The stock closed down nearly 3% at $308.95 on
Monday as coronavirus fears dragged down high-flying U.S. chip and
technology stocks.
Cupertino, California-based Apple, which raked in more than $142
billion in iPhone sales in fiscal 2019, has introduced lower priced
smartphone variants to woo budget conscious shoppers and check declining
sales of its biggest product category.
Last October, Nikkei reported that Apple asked its suppliers to
increase production of iPhone 11 models by up to 8 million units, or
about 10%, hinting that demand for the recently launched versions of its
flagship phone was picking up.
The iPhone maker is set to report its first-quarter earnings after markets close on Tuesday.
