Various reports have been showing us how Apple has been dealing with the COVID-19 pandemic and the effects on the supply chain. A new report now adds more detail to the situation. There have so far been a number of reports on Apple’s next flagship, the iPhone 12. Some reports have suggested that the iPhone 12 might actually have been delayed. Others have reported that the launch of the phone will take place according to schedule. Also Read - Apple allows Amazon Prime to use in-app payments without 30% cut
The new report from The Wall Street Journal now cites former employees and adds details on the process of production. “Apple’s new flagship models are usually unveiled in September, so the 5G phones are months away. However, the company’s operations team typically places orders in March and April for camera modules and other components for iPhone assembly in summer months, former employees said.,” reveals the publication. Also Read - Apple iPhone 11, iPhone XR and iPhone 7 get price hike in India: Here's how much they cost now
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The report also reiterates that Apple CEO Tim Cook has regularly kept in touch with employees since the outbreak started. The report noted that Apple is “prepared for this moment and will continue to invest in the future.” Also Read - Apple acquires weather app Dark Sky, to shut Android version
However, according to one analyst, the stocks of unsold iPhones or components could eat into the brand’s profit margins. “Being stuck with extra modems or unsold 5G iPhones could cut into the rich profit margins that helped make Apple the first U.S. company valued at $1 trillion, said Mehdi Hosseini, an analyst with Susquehanna International Group. He expects Apple to have component suppliers continue making iPhone parts as planned while it reassesses demand in May or June,” added the report.
What issues are troubling Apple?
The publication mentions that Apple is scrambling to prevent product delays. Apple’s engineering teams are unable to travel to China. Hence, they have resorted to “using video calls to direct Chinese colleagues through the iPhone’s prototype assembly.
The report also reveals that for the first time, Apple is allowing hardware engineers to take home prototypes of unreleased products. The main problem has been the lockdowns in the US, where the outbreak has increased significantly. Even though operations have restarted in China, lockdowns in the US have been complications the progress of these products.