Workers at Apple's component manufacturing factories say that their hours are being cut, and some are losing jobs, as the coronavirus has larger impacts on the world's demand for products — and maybe the release date of the "iPhone 12" as well.
Apple analyst Ming-Chi Kuo sees significant uncertainty surrounding iPhone production in China because of the ongoing coronavirus, and has detailed what he is seeing so far at Apple assemblers Foxconn and Pegatron.
Apple assembly partner Pegatron is considering a diversification of its production facilities with a new operation in Vietnam, a plan that would help move some of its manufacturing outside of China and potentially mitigating any future issues over US-China trade tensions.
Indonesian deputy industry minister Warsito Ignatius says that Taiwan firm Pegatron has signed a letter of intent stating that the company will invest between $695 million and $1 billion in local factories to build Apple devices.
Apple, after seeing allegedly poor demand for the iPhone XR, has reportedly told assembly partners Foxconn and Pegatron to stop any preparations the firms are making for new smartphone production lines specifically for the recently-launched model.
Apple is reportedly changing its orders for the iPhone XR with its assembly partners, with some production being shifted from Pegatron to rival Foxconn over alleged capacity and component sourcing issues.
Share prices of Apple's suppliers in Asia slipped on Monday, after U.S. President Donald Trump tweeted in response to Apple's letter to the U.S. Trade Representative about the proposed Chinese tariffs, with the President calling a shift in production from China to the United States an "easy solution."
Foxconn will not only manufacture every second-generation, 5.8-inch OLED iPhone — sometimes dubbed the "iPhone XS" — but 90 percent of 6.5-inch "XS Plus" units, and 75 percent of a 6.1-inch LCD budget model, according to one research firm.