AirPods and iPhones could be harder to find because of COVID-19


    The “heart and lungs” of Apple’s manufacturing is suffering, and it could get much worse as the deadly coronavirus continues to spread.

    That’s because Foxconn factories, which make Apple’s iPhone and AirPods, are reportedly extending their closure.

    The closure will be a “shock to the system” and “disrupt the supply chain further” for Apple’s best-selling products, analyst Dan Ives from Wedbush Securities wrote in a note.

    He admits that there are “mathematical gymnastics” to pinpoint exactly how many Apple (AAPL) products won’t be made because of its complex supply network.

    Ives guesses that every week Foxconn factories are closed, it could shave roughly 1 million iPhones off Apple’s sales. That amounts to the production of 40 million iPhones this quarter, roughly 3 to 5 million iPhones fewer than what is normally produced.And those numbers are optimistic.

    It will take about one to two weeks for factories to resume full production once they reopen, Ives said.

    Apple could miss out on making millions more iPhones if the closures last longer.AirPods, on the other hand, already had a shortage sparked by high demand during the holiday season. Ives said that production needs to “ramp [up] significantly once the factory goes back online to meet increasing global demand.”

    Read more at CNN Business News


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