Analyst: iPhone/AirPods supply improves China’s capacity is on track

Gene Munster, an analyst at Loup Ventures, a well-known venture capital firm, said in a recent report that recent improvements in Apple’s key product offerings mean that capacity at Chinese suppliers is nearing normal after operations were closed in early 2020 due to a new coronavirus outbreak.

Analyst: iPhone/AirPods supply improves China's capacity is on track

Infographic (from: Apple’s website)

Mr Munster said supply of four of Apple’s key products – the 64 GB iPhone 11, the 64 GB iPhone 11 Pro, the AirPods Pro and the second generation of AirPods – had improved significantly in 13 countries in the past two weeks.Net-a-Porter said the outbreak was also possible. reduced demand). Loup Ventures has been tracking the availability of Apple products since mid-February.

Specifically, the average iPhone is now shipped two days, down from a peak of 6.7 days on March 4. Similarly, AirPods shipped an average of 7.4 days from 10.6 days on March 4. While Munster could not explicitly link these changes to increased supply, he believes that the shorter delivery times were largely driven by China’s restart of production.

“In terms of Apple’s product offering over the past month, the key variable is the closure and restart of manufacturing and assembly facilities in China,” Munster wrote. We saw an extended delivery period just days after Apple announced on February 17th that its first-quarter revenue would be lower than expected. But in the days after reports of a resumption of manufacturing in China, delivery began to improve. “

In mid-February, Foxconn plans to restart production and restore capacity to 50 per cent by the end of February. By March 12, Foxconn was back in normal operation, weeks ahead of schedule.

Apple is still dealing with the effects of a new coronavirus outbreak, closing all retail stores outside Greater China this week to minimize the spread of the virus. In response to the outbreak, the company was also forced to adjust the way it held its annual Global Developers Conference, which it announced last week would be held exclusively online.