Apple suppliers see a decline in Q1 2020 iPhone orders

Apple Stores

The iPhone 11 series has been doing quite well in the market. However, a recent report claims that there a decline in orders. According to Reuters, senior executives from one of Apple’s major suppliers stated that orders for this quarter may be 18% lower than last year. Information out of China claims that Apple display supplier dropped its shipment to 58 million from the initial 70 million. The company is also reducing labor in its Apple production line in Vietnam

iPhone 11 apple supply chain

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Furthermore, a supplier in Malaysia (currently facing shutdown) said that the situation is “changing every day” due to ongoing supply chain disruptions. We all know the reason for the decline in iPhone orders. It is most likely the coronavirus situation that is ravaging different parts of the world. A recent report from Asia reveals that Apple is currently prepping for a delay on its iPhone 12 lineup. Recently, the Cupertino firm allegedly held internal discussions on the possibility of delaying the new handsets by months. The supply chain sources are suffering, and that could force the company to adopt such measures. However, DigiTimes claims that Apple did not require PCB manufacturers to postpone the launch of iPhone 12.

Some of Apple Stores are still shut

Apple stores in China just started normal activities recently. The company recently shut down its stores in other regions outside China. Apple is monitoring the coronavirus outbreaks in the US and Europe, its two largest markets. Moreover, the company also nurses concern that the current situation may lower consumer’s interest to upgrade smartphones. That makes sense, after all, we’re on the verge of a global economic recession. That can result in disappointing sales for the company’s first 5G smartphone.

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As of now, there is no exact timeline for the launch of the iPhone 12 series. However, the Californian government needs to lift quarantine orders before any serious business can proceed. Currently, most of Apple’s employees are working from home.

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