On January 28, Apple’s CEO, speaking about the coronavirus, told Reuters that although they have suppliers in the Wuhan area, at the heart of the outbreak, they have alternatives. Today we discover one of their alternatives.
Digitimes reports today that “The disruption of production in China is everyone’s nightmare in the IT supply chain as a result of the coronavirus. Many manufacturers are increasing their production outside of China, and Apple has reportedly shifted its orders to assembly lines in Taiwan for a range of products. “
In addition, the report claims that “Apple plans to transfer more assembly orders for its new models slated for launch in the first half of 2020 to factories in Taiwan, primarily to diversify production risks associated with the ongoing coronavirus outbreak. ” The latter concerns the new model Apple SE2 (or iPhone 9).
Beyond Apple, Chinese reports from Caixin Global to IDC China said the Chinese handset market could plunge 40% in the first quarter, which could add up to 4% in total for 2020.
However, for the first quarter, the crisis concerns Chinese smartphone sellers. In a second Caixin report, smartphone maker Xiaomi is one of 300 companies approaching banks for a total of $ 8.2 billion in new loans to cover the impact of the coronavirus.
To offset the drop in smartphone sales, Xiaomi is seeking loans of 5 billion yuan to produce medical resources such as masks and thermometers.