(Reuters) – Apple Inc’s (AAPL.(O) of the plan is to invest in an iPhone production by 10 percent in the first six months of this year hit a roadblock as the corona virus outbreak spreads across China, the Nikkei Asian Review reported on Tuesday.
FILE PHOTO: Apple’s next-generation (L-R) iPhone, for 11, Pro, Max, 11, Pro and 11, after they went on sale at the Apple Store in Beijing, China , September 20, 2019. REUTERS/Jason Lee
The company has asked its vendors and suppliers, many of whom have production facilities in China, and 80 million iPhones in the first half of the 2020s, the Nikkei reported, quoting people familiar with the plans of the organization. (s.nikkei.com/2O6wXuq)
Apple has made orders for up to 65 million of its older iPhones and 15 million units, a new cut-price model that it plans to unveil in March, according to the report.
However, the mass production is due to start in the third week of February, could be delayed due to the outbreak of the virus, the Nikkei reported.
The corona virus outbreak has so far killed more than 100 people and infected more than 4,500 in China, stranded in the dozens of millions during the Lunar New Year holiday, and rattled the markets around the world.
Apple’s shares increased to about 86 percent by 2019, an increase of 29% in the S&P 500 index. The stock closed nearly 3% at $308.95, on Monday, the corona virus fears have dragged down the high-flying US a-chip and technology stocks.
Cupertino, California-based Apple, which has brought in more than $142 billion in iPhone sales in fiscal 2019, and has a lower-priced smartphone varieties to woo budget-conscious shoppers, and to check the declining sales of its biggest product categories.
In October of last year, Nikkei reported that Apple has asked its suppliers to increase production of the iPhone in 11 models in up to 8 million units, or approximately 10%, implying that the demand for the latest version of its flagship product, the phone will pick up on it.
The iPhone-maker is set to report its first-quarter earnings after the markets close on Tuesday.
Apple did not respond to a Reuters request for comment.
Reporting by Subrat Patnaik and Roshan Abraham, Bengaluru; Editing by Shounak Dasgupta