The fast-spreading of the coronavirus is a known fact now, having been declared a worldwide Pandemic by the World Health Organization. Unfortunately, the Tech Industry is also becoming affected by it with the virus claiming the Tech giant Apple Inc. (NASDAQ:AAPL) as its latest victim. Reportedly, the launch of the iPhone 9 / iPhone SE 2 which was scheduled to launch on March 31 has been cancelled.
According to a report on Cult of Mac, the planned launch got cancelled due to multiple reasons with the primary reason being the effect of the Coronavirus on Apple’s product supply chain. Another reason for the cancellation was concern about the spread of the virus during the launch event meant to bring 1000 people together. The worsening effect of the COVID-19 strain of the Coronavirus in California was also one of the reasons since the launch was supposed to take place at Steve Jobs Theater in Cupertino, California.
The Santa Clara County Public Health Department banned mass gathering of 1000 people or more between March 11 and April 1. The order was issued due to the growing impact of the virus in the County. According to sources, the order played an important role in the decision to cancel the launch. Apple did not send out any invites for the event and neither did they make an announcement any such event. The number of confirmed cases in California of the Coronavirus is 133 with the virus already claiming 2 lives. These statistics played a pivotal role in the cancellation of the launch of the iPhone SE 2 / iPhone 9.
The impact of the Pandemic on Apple
The widespread of the Coronavirus has largely impacted the product supply chain of Apple. China, which is the largest market for Apple outside the US, is the worst affected. Any impact on sales of iPhone in China has a direct impact on Apple’s quarterly performance.
The sales of iPhones in China in February 2020 have widely been affected with a steep 61% drop as compared to the sales it made in February 2019. The tech giant also informed that it won’t be able to meet its forecasted revenue of $63 billion to $67 billion for the current quarter which ends in March. Apple sold around 49,000 thousand iPhones in February in China. This is a huge drop in its sales according to the released sales data since it sold 1.3 million iPhones during the same month in 2019.
The production and revenue drop is due to the halt in the production of iPhones in China due to the Coronavirus.
Why Apple tried the approach of a cheaper iPhone?
The saturation in the ultra-premium smartphone market has forced Apple to explore possibilities in the higher-mid segment smartphone market by launching the budget-friendly iPhone. Excited from the success of iPhone SE in the higher-mid segment, Apple seems to be all set to launch the successor of it. iPhone SE 2 is rumoured to have all the top-notch features of an iPhone albeit being budget-friendly. The rumoured iPhone, also called “iPhone 9” or “iPhone SE 2”, is suspected to have the chassis of the size of the iPhone 8 with A13 processor which belongs to the iPhone 11 family. The display is said to be a 4.7-inch liquid retina display with a resolution of 1334 x 750 with a pixel density of 326 PPI. The phone’s camera comes with optical image stabilization.
The main reason behind the company’s approach for a budget-friendly iPhone is the huge success the first iPhone SE had in 2016. The cost of iPhone SE started from $399 back in 2016. The small build of the phone attracted the fans who seek the comfort of having a small phone with Apple’s brand name and having top-notch specifications of the range iPhone SE became an instant success back in 2016.
But since the launch of iPhone SE 2 now being cancelled and having no official announcements about the rescheduling of the launch, it appears that Apple fans will have to wait for some more time as the world deals with the problems of this new spread pandemic of the coronavirus.