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Analysts believe Apple to be doing better than competitors in phone production during pandemic


As the COVID-19 pandemic took over the world, smartphone sales dropped to a 10-year low as demand declined, and many companies were forced to close stores, delay production, cancel or change events, and even lay off employees.According to a note sent to investors, seen by AppleInsider, analysts from investment company Cowen expect 35 million iPhones to be produced in the second quarter of 2020, which is to be a 5% drop quarter-to-quarter, and a year-on-year decline of 13%, where as overall Android phone production will be down 18% year-on-year.This shows that although Apple is seeing a decline like any other smartphone company, it’s smaller than what Android smartphone makers are facing. Apple’s main rival company Samsung is expected to see a drop in smartphone production of 17% year-on-year, which equates to 60 million units.

Cowen writes that in the current state of the global economy, iPhone supply and demand expectations may continue to drop in the upcoming months. The investment company also notes that Apple’s electronics manufacturing partner Foxconn has nearly recovered its production and working force since its COVID-19 shutdown in late March, which bodes well for Apple, as Foxconn produces half of the world’s iPhones, among other popular devices. As we reported early this month, Foxconn’s revenue for March is 60% up, confirming that the company is steadily recovering.

Cowen expects about 42.5 million iPhone units to be produced in Q3, which is a 21% quarter-to-quarter rise, but a 10% year-on-year decline.

Apple’s new strategy of releasing affordable versions of their flagship devices may be a key factor for the company’s good standing during such difficult times for most businesses. The newly announced 2020 iPhone SE is already in strong demand, as suggested by the number of pre-orders, and is seemingly going to be a big success for Apple.

The Cupertino company is also rumored to be launching a cheaper version of its wildly popular AirPods, dubbed by unconfirmed sources as the AirPods Pro Lite, or AirPods X. Not only that, but a smaller, cheaper version of Apple’s HomePod smart speaker is also expected to be launched, competing more directly with the likes of Google Home and Amazon Echo.



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