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Will iPhone production be affected by coronavirus?

In addition to the health risk, the coronavirus epidemic, which has 107 dead in China and infected nearly 4,500 people in several countries, raises fears of repercussions on the economy. Bloomberg and the Nikkei both report a risk regarding Apple’s engine, the iPhone.

Production line in China. Apple image.

The main iPhone assembly shops are located more than 500 kilometers from Wuhan, the epicenter of the epidemic, but that does not deprive them of potential repercussions.

Foxconn, which has a factory in Wuhan, asked employees of this unit to stay at their resorts during the Lunar New Year holidays, lengthened by the Chinese authorities. Apple’s largest subcontractor said it had measures in place to fulfill all of its orders.

“I cannot imagine a scenario in which the supply chain is not disrupted, however, believes analyst Patrick Moorhead of Moor Insights & Strategy. If there is even a major annoyance in raw materials, assembly, testing or shipping, there will be an interruption [de la production]. “

Apple protects against extreme scenarios by ensuring that its main components come from two sources of supply, both geographically and from its partners, according to Bloomberg. A policy put in place following the earthquake followed by the tsunami in Japan in 2011 which had caused problems of supply of components for the iPad 2.

The crucial period for the production of the iPhone is usually during the summer, in preparation for the launch in September. But this year, Apple plans to launch a new entry-level iPhone in March. An iPhone whose production should therefore start in february.

Coronavirus cases are increasing in Henan, the province in which the city of Zhengzhou is located, nicknamed iPhone City as the main place of production of Apple smartphones.

Tim Cook, who already announced on Twitter that Apple will make a gesture to fight against the coronavirus, will perhaps speak on the subject at the time of the presentation of the financial results which will take place this evening.

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