Outbreak to Hit iPhone Output if China Extends Foxconn Factory Halt

Apple may be in a for bumpy ride when it comes to iPhone production, if the Chinese factory halt due to the coronavirus is extended another week. Almost all Foxconn production is currently shut down until February 10, in accordance with government rules, and the key Apple supply chain partner is waiting to hear if the date will be extended.

Reuters says that Foxconn shipments to Apple will be disrupted if that happens, according to a person familiar with the matter.

Apple’s business is exposed to the coronavirus outbreak on the demand and supply sides. If Foxconn has to stay shut for another week, Apple will be not be able to maintain its normal rate of worldwide iPhone shipments due to the supply constraints. Apple has closed all of its retail store operations in China, alongside most other stores, which will also contribute to overall lower iPhone sales in China itself.

On the quarterly earnings call, Apple reported a wider-than-normal guidance range for revenue, estimating that sales in the current quarter will be anywhere between $62 billion and $67 billion. Apple’s chief financial officer Luca Maestri said that uncertainty due to the coronavirus was the reason for the larger quoted range.

Last week, Apple stock hit new all-time highs. But the stock is currently down about 3.5% from those levels as investors fear the negative ramifications of the virus.

February 04, 2020