Coronavirus outbreak may disrupt Apple’s iPhone plan

Bengaluru, Jan. 28: Apple’s plan to ramp up iPhone production by 10 per cent in the first half of this year may hit a roadblock as the coronavirus outbreak spreads across China, the Nikkei Asian Review reported on Tuesday.

The company has asked its suppliers, many of whom have manufacturing centers in China, to make up to 80 million iPhones in the first half of 2020, the Nikkei reported, citing people familiar with the company's plans.

Apple has booked orders for up to 65 million of its older iPhones and up to 15 million units of a new cutprice model that it plans to unveil in March, according to the report. However, the mass production which is due to start in the third week of February might be delayed due to the virus outbreak, the Nikkei reported.

The coronavirus outbreak has so far killed more than

100 people and infected over

4,500 in China, stranded tens of millions during the Lunar New Year holiday and rattled global markets.

Apple’s shares rose about

86 per cent in 2019, outperforming a 29 per cent rise in the S&P 500 index. The stock closed down nearly 3 per cent at $308.95 on Monday as coronavirus fears dragged down highflying US chip and technology stocks.

Cupertino, Californiabased Apple, which raked in more than $142 billion in iPhone sales in fiscal 2019, has introduced lower priced smartphone variants to woo budget conscious shoppers and check declining sales of its biggest product category.

Last October, Nikkei reported that Apple asked its suppliers to increase production of iPhone 11 models by up to 8 million units, or about 10 per cent, hinting that demand for the recently launched versions of its flagship phone was picking up.