In the past month, reports emerged that Apple was planning to launch new products in March, namely a new version of the iPad Pro and a low-cost version of the iPhone 8. However, the coronavirus outbreak could change the brand of the apple. and at least the iPad Pro can be postponed, Bloomberg says. Apple even closed the doors of its stores in China, but all the company's logistics have been affected. Even the factories, which, despite having resumed operations, are far from operating at 100%.
Apple had plans to release an updated version of the iPad Pro, with a new camera system in the first half of the year, but the plan could be postponed. The great dependence of China's factories on Apple's production line is the main reason. The large production capacity of well-trained workers, but with low labor costs, has been a great pillar of success in the company led by Tim Cook. And the reciprocal link, since as Apple has offered a lot of jobs to the population, it has maintained a green route to easily sell its technological products in China.
Anticipating the adversities that the coronavirus will cause in the company's business, on Monday he reviewed the earnings forecast for the current quarter, which ends at the end of March. And this blackest period of the company repeats the scenario of last year, at the time due to the trade war between the United States and China. It is even expected that general stocks of Apple products, including iPhones, may run out if factories do not return to mass production as soon as possible.
The problem is that there does not seem to be a plan B for Apple with regard to the allocation of production in other territories. The scale of its production network in China and the Chinese labor capacity unmatched by other countries and impossible to replicate, analysts say.