J.P. Morgan: Apple’s new iPhone release may be delayed by 1-2 months due to outbreak

BEIJING, March 26 (Xinhua) — Analysts at JPMorgan Chase said in a report Tuesday that Apple may delay the release of the new iPhone by a month or two due to production problems caused by travel restrictions and a slowdown in 5G network growth due to partial shutdowns.

J.P. Morgan: Apple's new iPhone release may be delayed by 1-2 months due to outbreak

Every year since 2011, Apple has launched its new iPhone in September or October. In most cases, the successful launch of new equipment, which accounts for more than half of revenue, is critical to the company.

But the OUTBREAK and response to the COVID-19 pose some challenges for Apple, including disruptions in its manufacturing supply chain in China and questions about demand for high-end equipment in countries where the outbreak has closed. Apple’s stores outside China are closed until further notice.

“Given the multiple bottlenecks in evT (engineering validation testing, now planned for mid-April), PVT (production validation testing) and pilot production (now scheduled for late June), we believe that the release of the new iPhone may indeed be delayed by one to two months. But we don’t think it’s likely to delay one or two quarters. JPMorgan analyst Gokul Hariharan wrote in the report.

Analysts also predict that the U.S. embargo could delay the timing of 5G networks for operators, which could also affect the release of new iPhones that support 5G.

“Due to the current blocking, delays in the construction of 5G networks in the United States could be the main risk to the launch of the 5G iPhone,” the analysts wrote. “

Regardless of the release date of the new iPhone, the smartphone market was in trouble during the outbreak. Global smartphone shipments fell 38 per cent in February from a year earlier, the biggest drop since tracking statistics began in 2003, according to Estimates by Strategy Analytics.