If the new iPhone is delayed, Apple will lose about $18 billion

Goldman Sachs estimates that if the new iPhone is postponed to November, it may bring about $18 billion in revenue losses to Apple and cause sales to fall by 14% year-on-year. Apple usually releases a new iPhone flagship product in September each year, and this year’s flagship product will be more important than most years in history. This new iPhone was originally Apple’s first mobile phone to support 5G mobile networks. Apple’s rival Samsung has released a smartphone that supports 5G networks a year in advance.

Many Apple observers also expect Apple to make major design adjustments to the iPhone, which will also be the first design innovation since the iPhone X came out in 2017.

It is understood that Apple may be considering delaying the launch of the new iPhone. Employees at the company’s Silicon Valley headquarters have to work from home, which poses a series of challenges to Apple’s highly guarded product development process; and the complex supply chain the company relies on has slowed down. In addition, even if Apple can produce the iPhone on time, the global economic recession means that many potential buyers will tighten their wallets.

David Collins, a former Foxconn executive and head of CMC, a manufacturing consulting firm, said that both Foxconn and Wistron, another manufacturing company that works with Apple, may face a talent shortage, which forces manufacturers to spend time training new workers.

Dan Wang, an analyst at Beijing Economic Research Company Jiafu Longzhou Technology, said there is another reason why Apple may delay the launch of the new iPhone: no one buys it. “It is demand, not supply, that is highly uncertain. If there is an unemployment rate of 20%, how much desire do consumers want to spend on a $1,300 iPhone? This is the real problem (Apple) is facing.”

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