How does Apple revive revenue with new products after lowering its expectations?

The impact of the new coronavirus on technology companies is not small. Even Apple, one of the Silicon Valley giants, had to adjust its March revenue forecast in its recent financial report.

There are two reasons for the adjustment of expectations, but both are caused by the butterfly effect of the virus.

Delayed start of construction and store openings bring sales obstacles

Affected by the virus, Apple’s supply chain companies and foundries in China are in a state of resumption of production after delays in reopening.

At the same time, due to the shortage of logistics resources, some factories have not yet returned to normal production levels.

How does Apple revive revenue with new products after lowering its expectations?

▲ Picture from: AndroidPIT

Although Apple has been increasing the iPhone production line in recent years, the persistent virus has caused the factory to lack manpower and material supply, which has made the factory production capacity recovery slower than Apple expected, so Apple can only reluctantly say that “the global iPhone supply will be will be temporarily restricted.”

According to sources quoted by Nikkei, the current iPhone capacity utilization rate is only about 30%-50%. Not only is the supply of active iPhones affected, but even the “new iPhone” that may be released in March is also delayed due to the delayed resumption of work. Facing stocking hurdles.

Ai Faner introduced in yesterday’s article that although Apple’s supply chain companies and factories have begun to resume work, factories such as Shenzhen Foxconn and Zhengzhou Foxconn still need at least 1-2 weeks to restore most of their production capacity, and these factories are precisely It is the main production line of the global iPhone.

How does Apple revive revenue with new products after lowering its expectations?

▲ Picture from: First-hand Video

From the interview video of “First-hand Video” on February 18 at the Foxconn Park in Zhengzhou, we can see that although some local employees have been notified to return to the factory, the on-site security guard stated that “there are 1,050 people on both lines in 4 days.”

Previously, Zhengzhou Foxconn introduced a reward policy of 3,000 yuan for rework to attract more employees to work. However, since the current reworkers are limited to Zhengzhou, the human resources of the assembly line are still very tight.

How does Apple revive revenue with new products after lowering its expectations?

▲ Out of stock iPad mini5

In fact, in addition to the impact on the supply of iPhone, the author also recently found that some models of iPad and iPad mini have also been out of stock due to the increase in demand for online courses on the e-commerce platform. Although the merchants indicated to the author that they will replenish the goods in a short period of time, they still need to be allocated according to the resumption of work of the factories.

How does Apple revive revenue with new products after lowering its expectations?

In addition, the author saw from the Apple Store online store that the standard configuration of MacBook Pro and iMac has also been extended from the previous 1-3 days to 5-7 days for delivery. If a custom configuration is required, the delivery time will be extended to mid-March .

The delivery time of AirPods Pro does not seem to be greatly affected, and the estimated delivery time is still 30 days later.

However, supply constraints are just one of the problems Apple faces.

How does Apple revive revenue with new products after lowering its expectations?

▲ A rare unmanned Apple Store, taken at Tianhuan Plaza on February 10

Since the Spring Festival holiday this year, Apple has suspended the operation of 42 Apple Store stores in China, and then for health and safety reasons, these stores have been closed for half a month (some stores have been closed on February 19). hours), which is not conducive to product Display and sales.

How does Apple revive revenue with new products after lowering its expectations?

▲ Some Apple Stores have begun to operate at certain times

In addition, consumers’ desire to purchase new products has also declined. Although online Apple Store and e-commerce channels can be booked for purchase, more consumers will prefer the offline experience first, and then the purchase method.

The long-term closure of offline stores has had a great impact on Apple’s product sales.

Apple shares fell 2% in Nasdaq trading on Tuesday after the revised revenue forecast was announced. Obviously, China has been one of Apple’s main markets for many years, and the delay in resumption of work and sales caused by the epidemic will undoubtedly have a greater impact on Apple’s stock price.

Can iPhone 9, new iPad Pro revive new quarter revenue?

Despite the revised revenue forecast, Apple appears to be holding its spring event in March as usual, and may unveil the “iPhone 9”, the new iPad Pro and the “Apple Tags” UWB Electronic tracker.

How does Apple revive revenue with new products after lowering its expectations?

The name iPhone 9 returns to the number suffix, but in fact it should be the long-rumored iPhone SE2.

Judging from online exposure news, this phone has a low price and simple configuration. Except for using the same A13 processor as the iPhone 11, this product will be similar to the iPhone 8 in terms of screen and camera configuration, but its price is only 400 yuan. US dollars (about 2780 yuan), which is half of the iPhone 11.

How does Apple revive revenue with new products after lowering its expectations?

▲ Currently the iPhone XR and iPhone 8 series are still on sale

As a result, Apple will have two entry-level products below the iPhone 11, one is the iPhone XR in 2018, and the other is the “iPhone 9” that may succeed the iPhone 8 series.

But the author thinks that after the launch of the iPhone 9, Apple is more likely to take the iPhone 8 and iPhone XR off the shelves, and use the two-speed configuration of the new machine to fill the vacancy of the 3500-4500 yuan iPhone.

How does Apple revive revenue with new products after lowering its expectations?

However, compared to the previous iPhone 9, the news of the new iPad Pro has been unstable. Last week, it was reported that Apple will release the new iPad Pro at the fall event in the second half of this year, but recently there are supply chain news that the factory The large-size iPad is already stocked, so the new product should be released in the first half of the year, not the second.

Digitimes, one of the sources of exposure news, not only mentioned the release in March, but also mentioned two new configurations of 12-inch and TOF three-camera, so this year Apple may release a new form of iPad Pro, Used to replace current 11 and 12.9 inch products.

Of course, here we do not rule out the possibility that Digitimes editors mistakenly wrote 12.9 inches as 12 inches, because we have not seen the exposure of “12-inch iPad Pro” parts on the Internet.

In addition to the two new devices, the UWB label that has been rumored on the Internet for a long time will also come out in the first half of the year.

According to the Apple research report released yesterday by Tianfeng International analyst Ming-Chi Kuo, my country’s USI will be responsible for the shipment of Apple’s UWB labels this year. month to September.

If the spring event in March this year goes ahead as usual, then Apple may also announce the UWB electronic tracker at the event and launch it at a later date.

However, for Apple, the most important thing at the moment is to restore production capacity and sales as soon as possible, which is the most effective way to increase revenue in a short period of time.

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Author: Yoyokuo