Virus to impact iPhone shipments?
Three big tech firms have made significant coronavirus-related announcements in the space of a few hours.
First, ZTE announced that it was cancelling its planned press conference at MWC later this month.
A couple of hours later, LG Electronics announced that it too would be withdrawing from the Barcelona-based trade show.
Most recently, iPhone maker Foxconn said it was stopping ‘‘almost all’’ of its production in China until at least February 10.
News that Foxconn is stopping ‘‘almost all’’ of its production in China until at least February 10 could have a significant impact on iPhone shipments later in the year.
Foxconn’s plant in Zhengzhou is the world’s biggest iPhone factory, with reports suggesting half of the world’s iPhones are made there.
A recent article in Vox Media’s technology website, The Verge, claims that ‘‘as many as 350,000 people work side-by-side to assemble Apple’s most profitable product’’ at Foxconn’s Chinese plant.
While a delay of a week will likely have no, or minimal, impact on the 2020 iPhone release date – an extended delay will no doubt have a bigger impact.
On request for comment, an Apple spokesperson referred to a statement made last week regarding the closure of its stores in China: ‘‘Our thoughts are with the people most immediately affected by the coronavirus and with those working around the clock to study and contain it.
‘‘Out of an abundance of caution and based on the latest advice from leading health experts, we’re closing all our corporate offices, stores and contact centres in mainland China through February 9.
‘‘Apple’s online store in China remains open. We will continue to closely monitor the situation and we look forward to reopening our stores as soon as possible.’’
The virus outbreak has also forced Chinese smartphone manufacturer and telecom giant, ZTE, to cancel its Mobile World Congress (MWC) press conference on February 25.
ZTE was expected to ‘‘launch and demonstrate a series of diversified 5G terminal devices and leading 5G innovative technologies – aiming to meet the diverse requirements of consumers and customers for 5G applicable scenarios’’.
The move to cancel the press conference has prompted the GSM Association (GSMA), the organisers of MWC, to release the following statement: ‘‘The GSMA continues to monitor and assess the potential impact of the coronavirus on its MWC20 events held annually in Barcelona, Shanghai and Los Angeles.
‘‘The GSMA confirms that there is minimal impact on the event thus far. MWC Barcelona 24-27 February 2020, will proceed as planned.’’
Oddly, the news that the show will go on, and that GSMA would be providing an ‘‘increased cleaning and disinfection programme’’, as well as advising ‘‘all attendees to adopt a ‘nohandshake policy’’’ wasn’t enough to stop LG from following ZTE’s lead.
Speaking about its decision to withdraw from the event, LG said: ‘‘With the safety of its employees and general public foremost in mind, LG has decided to withdraw from exhibiting and participating in MWC 2020 later this month.
‘‘This decision will prevent needlessly exposing hundreds of LG employees to international travel, which most health experts have advised.’’