Apple Delays Mass Production of 2020 Flagship iPhones

According to The Wall Street Journal, Apple is delaying the production ramp-up of its 2020 flagship smartphones by about a month, “as the coronavirus pandemic weakens global consumer demand and disrupts manufacturing across Asia, the heart of the consumer electronics supply chain.” From the report: Apple is forging ahead with plans to release four new iPhone models later this year, people familiar with its plans say. The phones, some with 5G connectivity, will vary in price and come in three sizes — 5.4 inches, two measuring 6.1 inches, and one at 6.7 inches, all featuring organic light-emitting diode, or OLED, screens, the people said. Apple’s annual product refresh fuels the majority of iPhone sales for an entire year, making new phones the linchpin of a business segment that accounts for more than half of the company’s total revenue. Apple usually unveils new iPhone models in mid-September and begins selling them before the end of the month. To do so, it usually ramps up mass-production in the early summer, building up inventory around August. This year, while Apple would still be building some of the new phones in the July-to-September period, the mass-production ramp-up will slide back by about a month, the people said. Apple is slashing the number of handsets that it plans to make in the second half of this year by as much as 20%, one of the people said. It isn’t clear whether the slashed amount for 2020 would be pushed back into 2021 for manufacturing.