10 February 2020
In the past couple of weeks, you must have heard whispers about the coronavirus outbreak in China having an effect on iPhone shipments for the quarter. Ming-Chin Kuo, a renowned research analyst, has now confirmed the same as he has predicted a 10% decline in iPhone shipments for Q1 due to coronavirus.
Kuo's latest research notes mention that coronavirus is affecting Apple's iPhone supply chain in China. The 10% decline will result in about 36 million to 40 million units getting shipped in Q1 2020. It means the same can also have an effect on upcoming affordable iPhone rumored to be called iPhone 9 or iPhone SE 2. Apple will reportedly start manufacturing the iPhone 9 this month itself and will launch the same in March 2020.
Here is the official statement from Kuo:
"Our latest survey indicates that the iPhone supply is being affected by the Coronavirus and, therefore, we cut the iPhone shipment forecasts by 10% to 36-40 million units in 1Q20. Now it's difficult to predict the shipments in 2Q20 because of the uncertainties of the Coronavirus epidemic and consumer confidence."
Kuo has further added that overall smartphone shipments are also expected to see a decline in China. He is expecting around 310 to 330 million shipments for Q1 2020 as compared to 360-380 million units in Q1 2019 which is a 15% reduction YoY basis. These include Android smartphones as well but their main issue of concern is the 5G network adaptability. Many of the users are not said to be ready for switching to the 5G network at the moment.