Apple and Samsung in flight? How coronavirus hit tech giants

Coronavirus is the main news of the week. He entered a dozen countries, killed more than a hundred people, and also turned the Chinese city of Wuhan into an exclusion zone. The infection got to the industry: recently, the PRC authorities suspended the work of factories where they make Samsung and Apple equipment. Analysts predict that this will adversely affect the release of new gadgets – especially iPhones. We understand what threatens IT companies.

What happened

We briefly recall the chronology: after the outbreak of coronavirus in the multi-million-dollar Wuhan, the city was quarantined. Now you can neither leave nor enter, and the frames from there resemble films about the post-apocalypse. When the number of infected began to grow, a similar fate befell neighboring towns. At the same time, authorities across the country canceled mass events in honor of the Chinese New Year.

Soon it was the turn of big business. McDonald’s, Starbucks, IKEA and H&M temporarily closed their points in the outbreak. Disneyland hung the castle on an amusement park in Shanghai, located 700 kilometers from Wuhan. Tech giants have also been affected – Xiaomi has quarantined retail chains across the country.

But the most noticeable thing for the global consumer – the PRC government has suspended the work of dozens of factories producing goods for export. The city of Suzhou , in the vicinity of which the manufactories of Samsung and Foxconn are located, was especially given to the latter, for example, they collect iPhone.

What equipment is made in closed factories?

Samsung no longer makes smartphones in China, so Galaxy S20 will be on schedule. The factory in Suzhou made computers, laptops and all kinds of components – for example, displays for laptops. How critical is it is difficult to say. The Korean giant has other manufactures with a similar profile. But no one knows if he can quickly switch power.

But Apple almost certainly has problems. The Cupertin company produces iPhones mainly in China, at Foxconn factories – the largest of them is located in Zhengzhou and is still operating. However, the Suzhou factory was also an important cog in the system. In addition, in this city there are another dozen enterprises operating on Apple, which are also quarantined.

“Honestly, it is difficult to imagine a scenario in which the supply chain will not be violated. If there will be at least one serious fault in the manufacture, assembly, testing and delivery, it will break the whole chain “ , – quotes Bloomberg word Murhida Patrick, a former top manager of AMD and analyst Moor Insight & Strategy.

What? iPhone SE 2?

We’ll explain everything now. Usually, Apple launches smartphones in production about 3-4 months before the announcement, so that a decent batch accumulates by the start of sales. By the way, that’s why, even before the presentation of the next iPhone, we already know everything about it – thousands of people work in Chinese factories, someone will merge photos of the new case or accessories. The California company gives out the most interesting in September – it was this month that iPhone 7, 8, X, XS and 11 were introduced. So there is still time to create flagships – they will only be launched in early summer. But!

Apple also has a presentation in March – it usually shows new services, applications and lotions for the iPad. Judging by the leaks, this time the company intended to change the tradition by introducing the “cheap” iPhone 9 or iPhone SE 2 – a smartphone in the G8 case, but with flagship hardware. The information seems reliable: rumors about the continuation of the iPhone SE have been around for a long time, and the Nikkei publication says that the brand has already ordered the Chinese factories to produce 15 million iPhone 9. But what will happen to the model now is not clear.

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