It’s Just Starting: Apple Supply Woes To Last For Months, Nikkei Reports

It’s Just Starting: Apple Supply Woes To Last For Months, Nikkei Reports

As we’ve noted in the last several weeks, Apple’s Foxconn factories in China had to have production up and running around Feb 10-11 to meet full production targets by the end of the month. So far, some production lines are operating, but much of it has been idled because of the virus outbreak. 

A new report via Nikkei Asian Review has confirmed our thoughts that Apple will see significant supply chain disruptions that could lead to product shortages in the months ahead. The problem could persist through April, sources told Nikkei. 

Apple delivered a statement on Monday evening, admitting it does “not expect to meet the revenue guidance we provided for the March quarter” due to production woes. 

In other words, the guidance Apple issued almost three weeks ago was completely bogus and has now trapped a generation of retail traders long in the stock as it has now faded from all-time highs. 

Apple’s aggressive plan to produce cheaper iPhones in 1H20 could be derailed because of the virus outbreak, as much of the Chinese economy is shutdown.

“The suppliers are doing their best to produce and ship the [cheaper] iPhone within four weeks. …The delay can’t be too long, otherwise, it will affect the sales strategy of Apple’s new products in the second half of this year,” a source with direct knowledge told Nikkei.