The coronavirus outbreak has been hurting Apple's iPhone production, and one of the most accurate analysts says it won't get better until the second quarter of 2020
- Production of Apple's iPhone is not expected to significantly improve until the second quarter of 2020, analyst Ming-Chi Kuo said in a recent note reported by MacRumors.
- Shipments from one of Apple's camera lens suppliers Genius Electronic Optical have fallen significantly over the past month, and production isn't expected to ramp up again until at least May, says the report.
- The report also comes after Apple said it would not meet its revenue target for its fiscal second quarter because of weakened demand and supply constraints stemming from the coronavirus.
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Apple has been facing supply constraints because of the ongoing coronavirus outbreak, and production of the iPhone is not expected to significantly improve until the second quarter of 2020.
That's according to a recent research note from TF International Securities analyst Ming-Chi Kuo, an analyst known for his often accurate Apple predictions, MacRumors reported on Sunday.
One of Apple's primary camera lens suppliers appears to be particularly impacted, according to Kuo. Shipments from lens supplier Genius Electronic Optical are said to have fallen significantly over the last month, and Kuo estimates that there is roughly one month of inventory remaining. Production isn't expected to significantly ramp up again until May at the earliest, says Kuo.
On February 17, Apple warned that it would not meet its expected revenue target for its fiscal second quarter of 2020 because of weak demand and supply constraints resulting from production facilities in China operating more slowly than expected.
Despite this, Kuo has previously said that he did not expect the new low-cost iPhone that Apple is rumored to debut this month to be delayed, as MacRumors reported in mid-February. Early last month, Kuo also cut his iPhone shipments forecast for the first quarter of 2020 by 10%.
Apple CEO Tim Cook said in an interview with Fox Business on Thursday that he was "very optimistic" China would get the coronavirus under control.
Although the coronavirus disease, COVID-19, has continued to spread in other areas of the world, including Iran and Italy, the World Health Organization said on February 24 that the epidemic began to decline in China after February 2, according to CNBC.
"It feels to me that China is getting the coronavirus under control," Cook said to the network. "I mean, if you look at the numbers, they're coming down day by day. So I'm very optimistic there."
