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Apple is planning to boost production and to ship 80 million iPhone units before June and 200 million by the end of 2020. However, the coronavirus might impede that plan.
Apple Inc. is looking to sell a lot more iPhones this year than it did in 2019. According to reports, the tech giant has already placed an order for 80 million different units of the iPhone for the first half of 2020 alone.
Apple to Ship More iPhone Units in 2020
Citing a Nikkei story, Bloomberg reports that Apple hopes to have 80 million iPhone units by the end of June 2020. The report states that this number is already 10% higher the number the company put out last year.
The report also includes details. Apple previously said its iPhone 11 sales and demand already beat the company’s expectation. This is probably why most of the 80 million units already ordered – over 81% representing 65 million units – will be the iPhone 11 series. A currently unreleased and cheaper model will make up the remaining 15 million iPhone units.
In December, Coinspeaker reported that popular Apple analyst Ming-Chi Kuo suggested that Apple has plans to release a cheaper iPhone model. Recent reports now suggest that the iPhone SE 2, as it might be called, will begin production in February.
If stories pan out, the new model will see a March release.
Apple’s Plans for iPhones in 2020
Apple is carrying the heavy demand its iPhones received last year into 2020. Apple predicts that customers will sustain their demand, as it prepares to satisfy them. Last year, Apple somewhat groaned under the demand and struggled a little bit to meet up. This year, the company might be better prepared to handle the demand.
The report further names Hon Hai Precision Industry, Wistron Corp., and Pegatron Corp., as the assembly plants that will handle production.
Ming-Chi Kuo’s forecast says that there will be 5 new iPhone models in 2020. Apple expects to sell at least 200 million units in total, this year.
Apple’s iPhone Timeline and the Coronavirus
While Apple’s timeline and plans are commendable, the tech giant will have to take the current coronavirus epidemic into consideration. At the moment, the death toll is over 100 with more than 4,500 confirmed cases. Of the confirmed cases, hundreds are already in critical condition and the fear of a higher death toll is present.
The coronavirus has spread from China to other places. According to a Focus Taiwan report, the country’s Central Epidemic Command Center (CECC) has announced a total of seven confirmed cases. Taiwan’s proximity to the People’s Republic of China (PRC) puts it at high risk of a large epidemic.
Apple might have a problem with meeting up with its goals because of the virus. This is because all three of the aforementioned assembly plants are in Taiwan.
In China, there is a travel lockdown affecting 50 million people and many businesses have been closed. A similar occurrence in China will seriously affect Apple’s timeline and could even crash the company’s stock.
Because of the virus, Apple could find it difficult or even impossible to ship 80 million units before June. The 200 million forecast for the end of December is also shaky at the moment.