Apple (AAPL) is delaying the mass production of its 2020 iPhones by around one month, according to a report by the Wall Street Journal.
The report cites coronavirus-related supply disruptions across Asia, and soft demand as behind the company’s decision to wait with the mass production of its iPhone 12. Normally AAPL announces the phones in mid September, with shipping closely following in late September.
For the launch this year, Apple is slated to release four 5G models with OLED screens in three different sizes (5.4 inches, 6.1 inches and 6.7 inches).
At the same time, the report suggests that Apple plans to slash the number of handsets available in the second half of the year by 20%, although the Wall Street Journal did not say whether these handsets would subsequently be made available in 2021.
On Thursday, Apple is scheduled to report its 2Q:FY20 earnings results. Ahead of this key date Monness analyst Brian White reiterated his AAPL buy rating with a $370 price target.
Although he expects Apple’s near-term financial results to be an unpleasant sight, the analyst ultimately believes that “Apple’s strong balance sheet, iconic brand, rapidly growing services business, pipeline of innovations, hardline stance on personal privacy and leadership role during this crisis will allow the company to emerge from this downturn stronger than it entered.”
Apple withdrew its 2Q:FY20 guidance (issued on January 28) on February 17 due to the breakout of Covid-19 in China, impacting both the company’s production capacity and demand.
Overall the stock shows a Moderate Buy analyst consensus with a $310 average price target. With shares down 4% year-to-date, the price target indicates upside potential of just over 10% from current levels. (See AAPL stock analysis on TipRanks).
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