How Coronavirus Can Affect iPhone Prices

How Coronavirus Can Affect iPhone Prices

Foxconn, which produces smartphones for Apple and other brands, has stopped “almost all” of its production in China until at least Feb. 10 due to the coronavirus outbreak. Some of the sources report that the production could be shut until the end of the month. An extension of the stoppage could disrupt shipments to clients including Apple. 

Well, half of the world’s iPhones are said to be made at Foxconn’s “iPhone City” in Zhengzhou, China. And nearly all of the world’s iPhones are made in China, most by Foxconn but some by Pegatron. 

A statement was made that Foxconn will reopen its facilities on February 10th. But the manufacturer’s ability to reopen their factories is completely dependent upon approval from central and provincial governments. 


How can this impact the pricing for brand new Apple products? 

There might be two main reasons for slight rise in price for the brand new Apple products:

1. Current stocks that are at the warehouses of the largest wholesalers would not be able to cover the demand on the Apple products, therefore the price would slightly increase until manufacturers will reopen their facilities and would be able to supply regularly.

2. The rise in price might be also caused by a panic among some wholesalers, like it was in September 2019 right after iPhone 11 release. As you remember, a lot of wholesalers of used phones dropped their prices right after the iPhone 11 release even though there were no used iPhone 11 on the market for the next 2 months. In this case, wholesalers of new could increase prices artificially causing the shortage of the product. 

We’ll see how it goes at the beginning of the next week. 

Sources: Reuter, Bloomberg.

Published : 06-Feb-2020 02:48 PM
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