Coronavirus Could Stall Production Of iPhones

Matty-Sways

Spread of the coronavirus could potentially stall Apple’s production of iPhones.

Over half of the world’s iPhones are produced at a major factory in Henan, which is the neighboring province of Wuhan. Wuhan is the epicenter of an outbreak of the coronavirus which has risen its death toll to 106 people. The factory near Wuhan employs over 350,000 people.

Wuhan is on an effective lockdown with nearby cities implementing their own travel restrictions. If the virus spreads to neighboring provinces to a substantial degree, production could be stalled.

In the midst of this viral spread, Apple has made plans to increase its production. Production plans outline an order of 80 million iPhones to be produced during the next months. That is a 10% increase from last year’s production levels. Additionally, production will include the potential roll out of a new iPhone model that has a 5.4-inch screen. It is rumored that this new model will be unveiled and released by this upcoming fall.

"The [coronavirus] situation in China could affect the planned production schedule," a supply chain executive, who remained anonymous, said.

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