Apple suppliers prepare for decreased production in upcoming months

Apple is one of the least affected smartphone companies in terms of revenue, during the COVID-19 pandemic, having earned $56 billion during Q1 of 2020, 8% higher than the previous year.

Despite this, the Cupertino company has been suffering a significant sales decrease in China, with iPhone sales in particular declining a staggering 75% between the months of January and February. That's especially concerning for the company, considering China is the only country where physical Apple stores have been opened since mid-March, unlike the rest of the world where retail stores remain closed.

As we've learned, Commercial Times (via 9to5Mac) reports that Apple supply partners in Taiwan expect production to stagnate, as coronavirus keeps causing a significant drop in smartphone demand worldwide.

With many families needing to remain at home, some without a flow of income, people are understandably difficult to persuade into purchasing expensive flagship phones at this time.

Yesterday, we reported on the possibility of Apple's upcoming 5G iPhone getting delayed to December, or even next year. The 5G iPhone 12 series were expected to be introduced in September, though Apple could face issues with its supply chains, among other roadblocks, causing a delay.

Popular Apple analyst Ming-Chi Kuo has shared his expectations of four new iPhones this fall, the 5.4-inch iPhone 12, and a 6.1-inch iPhone 12 Plus, along with a 6.1-inch iPhone 12 Pro and a 6.7-inch iPhone 12 Pro Max. They're all expected to feature 120Hz refresh rate AMOLED screens, with the Pro models boasting 6GB of memory.

Apple's biggest iPhone manufacturer Foxconn reported a 60% revenue increase for March, suggesting that it's getting back to its normal working capacity, and will likely be up to the task when production of the new iPhones begins.