According to the report by Reuters Apple’s order for the quarter ending March will drop by 18% as compared to last year. Also, the production ramp-up for the upcoming latest 5G iPhones has been postponed. The senior official who told Reuters also said that the 5G iPhones may still launch as planned fall this year.
Reuters says that Apple’s supply chain in China is up and running. However, suppliers are still worried about how much demand there will be for both the current and the new iPhone models expected in fall 2020.
According to that senior person at one of Apple’s major contract assemblers, the problem is not the production shortage or supply chain in China; it is the concern about the demand of the new iPhones.
According to the report by Reuters, no one now talks about the shortage of materials or the manpower in China. Everyone has their focus now on fulfilling the demand of the phones by the U.S. and European customers.
Earlier there was a report by Nikkei, that Apple will delay the iPhone 12 launch by several months due to slow production. However, Apple hasn’t decided to delay the launch of the new iPhone yet.