"Apple iPhone 12 Launch to Be Delayed by 1-2 Months"

[Asia Economy Reporter Seulgina Jo] Due to the impact of the novel coronavirus infection (COVID-19) that swept the world, reports have emerged that the release of Apple's new iPhone could be delayed by 1 to 2 months.

According to economic media CNBC and others, JP Morgan revealed on the 25th (local time) in an investor note the possibility of a delay in the release of the 5G iPhone (tentatively named iPhone 12), which was expected around September to October. It is analyzed that the spread of COVID-19 has damaged the manufacturing supply chain and slowed economic activities in major countries, inevitably having a negative impact on the demand for high-end IT devices like the iPhone. The growth of the 5G network is also expected to slow down.

Gokul Hariharan, a JP Morgan analyst, stated in an investor note regarding Taiwan's TSMC, which produces Apple's core system semiconductors such as application processors (AP) and modems, that "there is a high possibility of a 1 to 2 month delay," and that the schedule for iPhone 12 production is facing setbacks. Due to the spread of COVID-19, key business trips of Apple executives have been paralyzed, causing delays not only in the engineering validation test (EVT) originally scheduled for mid-April but also in production verification tests (PVT) and pilot production (scheduled for the end of June).

However, he added, "It will not be delayed by a quarter." CNBC reported that Apple typically unveils new iPhones in September to October every year, which accounts for more than half of its annual sales and is therefore very important. The iPhone 12 is expected to be released in four models: 5.4-inch and 6.1-inch OLED display models equipped with dual cameras, and 6.1-inch and 6.7-inch OLED display models featuring a depth (ToF) camera and triple cameras.

On the same day, Nikkei Asian Review also reported that Apple is considering delaying the release of the new iPhone by several months. Following this news, Apple's stock price closed lower on the New York Stock Exchange that day. Apple did not comment on the related reports.

Analysts believe that the spread of COVID-19 may also delay the construction of 5G networks in the US and other countries beyond the original plans. This is also expected to inevitably affect the timing of the release of the new iPhone that supports 5G.

Meanwhile, Apple is considering a plan to gradually reopen its stores worldwide, which were closed due to the COVID-19 situation, starting in April.

Previously, as the COVID-19 outbreak showed little sign of subsiding, Apple decided to continue closing all stores worldwide except in China 'until further notice.' There are a total of 460 Apple stores located outside China. The Apple Garosugil store operating in Korea also began temporary closure from mid-month. In the case of China, where COVID-19 first broke out, all 42 stores have resumed operations after the store closure measures in February.