iPhone Demand May Decrease Nearly 20%

One of Apple's (NASDAQ:AAPL) major contractors for iPhone production said it expects orders to decrease by 18% for the first quarter ending in March compared to the same period a year ago, sources told Reuters.

Apple is also postponing the planned increase in the production of new phones that work with next-generation 5G networks.

An unnamed supplier of iPhone displays for Apple is preparing for a 17% drop in orders for this year, Reuters also reports. As a result, the company is preparing to cut jobs in its Vietnam-based production facility.

Arthur Liao, a tech analyst at Fubon Research, cut yesterday expected iPhone shipment forecasts from 41 million units to 35 million units, a decrease of 17%.

On the other hand, a sensor producer for the iPhone says the company is producing parts as planned.

“We were given a forecast for this quarter before the pandemic, about a month ago,” an unnamed source from the company said.

“And now we are still producing as per the forecast given to us.”

Elsewhere, Apple confirmed yesterday that it is developing an app, together with the Trump administration and federal agencies, to direct users to the Centers for Disease Control (CDC).

According to the tech giant, the app - “COVID-19” - will ask users questions about symptoms, location and risk factors and then provide them with further guidance, stemming from the CDC. On the privacy concerns, Apple said that neither them nor the government will collect any personal data.