Apple supply chain analyst Ming-Chi-Kuo says that the Coronavirus is a threat to Apple’s business, since the majority of its supply chain is based in China (via AppleInsider).


First, he expects smartphone shipments to drop in China throughout this year and possibly into the future. He writes:

…shipments of Apple products will likely face downside risk because the consumer confidence of Chinese and global markets could be negatively affected by the coronavirus outbreak…

Next, because of this labor shortage, Kuo expects low shipments for Apple’s components and devices. The iPad Pro, iPhone SE 2, and Macs are at risk, as well as other rumored products coming out this year.

If there are no significant improvements regarding the coronavirus epidemic in the foreseeable future, we predict that Apple may delay new material adoptions or lower test requirements for components to shorten qualification processes and launch new products in 2H20 on schedule, and the lower spec will likely hurt the ASP of materials or components.

Further Reading

[Apple Stops Almost All Travel to China Amid Coronavirus Outbreak]

[iOS 13: How to Use Screen Time as a Privacy Feature]

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Andrew: Let me see if I understand this argument. 2019-nCoV will asymmetrically affect Apple sales because, given that Apple recycle much of their material, this allows for the sale of new products with residual human residue from those recycled components, in which Coronaviridae can survive, thus converting these devices into pre-infected fomites that, if purchased and used, will infect users worldwide and could result in a global pandemic, potentially ending human life on earth, as we know it. Apple users, typically having both greater disposable income and higher median education than say, Dell or Android users, will have a broad… Read more »