The coronavirus affects the industry tech: why Apple may be at risk?

With entire cities in quarantine and airports and means of transport closed by the coronavirus of Wuhan, the industrial production of china is paralyzed. The authorities have decided to prolong at least until the 3 of February the New Year holiday to prevent more infections.

Also from the rest of the world are closing the doors to the asian giant: according to Reuters, many multinational companies such as Facebook, is LG or Goldman Sachs have banned their workers travel to the country. The company Mark Zuckerberg has even asked its employees to work from home if they had already travelled there.

With all these alarms raised, the more likely it is that some productive sectors to look resentful. It is the case of the tech industry, and especially Apple, one of the companies that is now more aware of the situation of the coronavirus, both for its production, and because it has more than 10,000 employees in the asian country.

If Tuesday the international environment The Verge reported of that it is not planned to close factories of Foxconn -to develop key products for countless technology companies, including the one headed by Tim Cook-, some analysts suggest that the next iPhone IS, the low cost of the company, will be affected for the public health crisis that is triggering the epidemic of 2019-nCoV.

Likewise, production of iPhone 11 it could also slow down, especially given that according to the latest official data published this model is generating a lot of demand and that Apple had been informed of their plans to increase its production by 10% compared with the previous year.

Virtually all iPhone in the world are manufactured in China, mainly by the companies Hon Hai Precision Industry Co. Foxconn’s so called ‘iPhone City’, in Zhengzhou, and Pegatron Corp., at an assembly site near Shanghai. Each of these locations is more than 500 kilometers of Wuhan, in the center of China and the epicentre of the outbreak is viral, but that distance do not provide immunity from its effects.

As we reported recently, the rumors will opt for the launch of a new iPhone model IS coming soon, is expected for march. In the case that this strategy of the of Cupertino for your model low cost were true, the crisis of coronavirus definitely would affect the production of this terminal.

In a statement to Bloomberg, a veteran analyst of the industry ‘tech’ has said: “I Cannot imagine a scenario in which the supply chain is not interrupted”, adding that “if there is a major problem in raw material, manufacturing, assembly, test or shipment, there will be a disruption”.

With respect to their terminals, high-end, Apple usually launches their new iPhone of the latest generation around September, so it is unlikely that the virus has a significant impact in those plans.

For the moment, the company has not made any official statements about it. Its CEO, Tim Cook, has been limited to the issue on Twitter a message of support: “While the people in China and around the world celebrate the Lunar New Year, we send our love and support to the many affected by the Coronavirus. Apple will donate to groups on the ground to help all those affected”.

Foxconn has reported that it is “monitoring” the situation in China and “following all the practices of health recommended”. And although it has declined to comment on the production in specific locations, has been confirmed to have put in place “measures” to ensure that they will be able to continue to comply “with all obligations of global manufacturing”.

20MINUTOS.IS – Technology

The coronavirus affects the industry tech: why Apple may be at risk?
Source: english  
January 30, 2020

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