Apple has had trouble preparing orders for iPhone 12 components due to uncertain consumer demand

Apple is continuing to push ahead with its upcoming iPhone 12 device, which is expected to support 5G, with revolutionary 3D cameras and other features, amid a new crown boom in the U.S. and other countries,media reported. Apple has had trouble preparing new devices and ordering components because of travel restrictions in China, and one of the factors it is dealing with includes forecasting consumer demand, the Wall Street Journal reported.

Apple has had trouble preparing orders for iPhone 12 components due to uncertain consumer demand

Apple’s new iPhone won’t be available until December, but production and preparation spree are months ahead of schedule. Former employees who spoke to the Wall Street Journal said Apple’s operations team identified orders for camera modules and other components in March and April based on the number of iPhones Apple expects to sell.

The order determines how many devices Apple produces, and consumer demand has never been so clear as the new crown becomes popular. Millions of people are out of work, while others worry that they may not be able to find work in the future, which could lead to fewer new iPhone purchases.

As Apple prepares to launch its new low-cost iPhone model, consumer demand is looming and must begin ordering components for its latest flagship smartphone, which is usually launched in the fall.

The iPhone, which is expected to be launched this fall, will attract a lot of consumer interest from the use of 5G wireless technology, which accounts for a large portion of Apple’s revenue.

Because of the worldwide blockade, many companies are trying to determine consumer demand, leaving them unaware of the future. If Apple orders too much, it could be affected by expensive 5G modems or unsold 5G iPhones, which could cut the company’s profit margins.

Susquehanna analyst Mehdi Hosseini told the Wall Street Journal that Apple is likely to let parts suppliers produce iPhone parts as planned and will re-evaluate demand in May or June. This is in line with reports from “iPhone” suppliers such as TSMC, which said Apple has not cut orders.

Apple is said to be “scrambling” to prevent product delays as it prepares to launch its new iPhone this fall, with conflicting reports in recent weeks about whether the iPhone 12 will be available on time. As mentioned in previous reports from Bloomberg News and Information, Apple’s engineering team is doing business using photos and prototype video calls. Apple has also allowed some engineers to bring home prototypes of future products that Apple has never allowed before, all in order to continue working as usual.

Even if the new 5G iPhone is launched on time this fall, Apple may struggle to persuade customers to replace their old devices, given the economic uncertainty. The low-cost iPhone in production may be attractive, but it won’t make as much money as Apple’s more expensive flagship device. When Apple holds a earnings conference call later this month, we may learn more about Apple’s plans and the current economic impact on the company’s earnings.