One of the reasons we can’t seem to get analysts to agree on what’s going to happen is that even though China seems to have turned the corner in new cases of coronavirus, the rest of the world is getting worse. Apple has opened its 42 Chinese brick-and-mortar locations and iPhone mounts Foxconn and Wistron have hired the usual number of assembly leaders needed to remove the original orders Apple has made for iPhone 5 models by 2020. But consumers in markets like Apple rely itself for strong demand on the iPhone including the US, is not emotionally ready to focus its attention on smartphones. And with many out of work and just trying to meet their monthly “nut”;, the last thing they buy is an expensive new iPhone to do right now.
Strong sales of the iPhone 9 can be a bad sign for Apple’s flagship phones
According to the Wall Street Journal, the economic upheaval caused by the corona virus forces consumers who traditionally update quite often to stick to their current daily driver. The business newspaper cites the experience of sports radio producer Adam Michaels who usually buys four new iPhones every two years for himself and his family. “The cost is not worth it right now,” he says. And though Apple will soon have to start ordering supplies needed to build its iPhone 5 flagship models from 2020, measuring demand for something is just a guess. Depending on when Apple’s starting level iPhone 9 is released, the company may be able to use the demand on this device to measure how much demand it will be for its 5G enabled flagship.
Render the upcoming Apple iPhone 9
IPhone 9, which will use the body on The iPhone 8 and the same A13 Bionic chip powering its flagship phones from 2019 will start at $ 399 for the 64 GB base model. Stronger-than-expected sales of this model may be negative for Apple as it may be an indication that some consumers are turning to the lower priced model instead of the expensive flagships. But the flagship devices have 5G connectivity while the iPhone 9 does not. So in one respect, this will be a test of demand for 5G. The next generation wireless connection, 5G will deliver ten times the download speed of 4G LTE leading to new technologies and industries around the world. However, in most countries we are at the beginning of 5G and the carriers have not yet offered consumers the full capacity for this technology.
Apple hopes to start production of the four rumored new 5G models in July, which means they need to start ordering from their supply chain now. And that takes us back to the beginning of the circle. Japan’s news agency Nikkei says Apple could delay the launch of its first 5G iPhones by as much as two months while others, including the famous analyst Gene Munster, see Apple stick to the traditional release in September. It may not take time before we know exactly what Apple intends to do. With the WWDC Developer Conference opening online, in June, we can look for clues that may reveal if Apple plans to delay the launch of its first 5G phones.