Coronavirus May Disrupt Apple’s Supply Chains in China
The coronavirus stemming from Wuhan, China is having an effect all across the world. Analysts believe the impact of the virus could be affecting Apple’s supply chains in China.
Apple has over 10,000 employees across China in both retail positions as well as corporate. That doesn’t even take into account the millions of workers Apple is tied to by its supply chains. Most notably, Foxconn is one of Apple’s largest supply chain as well as Pegatron Corp. While neither is based in Wuhan, analysts believe the coronavirus could indeed disrupt production.
In a recent report, Bloomberg spoke to a number of analysts regarding the viral outbreak and the effect it could have on Apple’s 2020 calendar. While speaking to Patrick Moorhead of Moor Insights & Strategy, he said: “I can’t imagine a scenario where the supply chain isn’t disrupted. If there’s one major hiccup in the raw materials, fabrication, assembly, test, and shipping, it will be a disruption.”
Although Apple has not issued a public statement regarding the matter, a representative from Foxconn spoke to Bloomberg, in an attempt to reassure the public regarding health standards by saying: “We can confirm that we have measures in place to ensure that we can continue to meet all global manufacturing obligations.”
While Apple typically launches its new flagship smartphones in September of each year, that does not necessarily mean they are immune to any negative effects regarding production. While the virus will hopefully be snubbed out sooner rather than later, Apple is reportedly on the heels of mass-producing an iPhone SE successor this spring.
With the coronavirus infecting over 4,500 globally and causing the death of over 100, it’s safe to assume that it could lead to some last effects on manufacturing on many separate facets. Apple’s Tim Cook will reportedly be holding a conference call later today to discuss the latest financial earnings this past quarter and there is no doubt that coronavirus will become a topic of conversation.