Home / Tech / News / Coronavirus effect: Apple’s 5G iPhone launch may get delayed, BofA Says

Coronavirus effect: Apple’s 5G iPhone launch may get delayed, BofA Says

Phil Schiller, senior vice president of worldwide marketing at Apple Inc., speaks about the new iPhone Pro during an event at the Steve Jobs Theater in Cupertino, California, U.S.
Phil Schiller, senior vice president of worldwide marketing at Apple Inc., speaks about the new iPhone Pro during an event at the Steve Jobs Theater in Cupertino, California, U.S. (Bloomberg)

According to BofA analyst Wamsi Mohan, the launch timing for upcoming models will “depend on how production ramps back up in April and May.”

Apple Inc.'s highly anticipated 5G iPhone could see a delayed release as a result of the coronavirus, according to BofA, which cited a conversation with an expert on the company's supply chain.

The expert, Elliot Lan, wrote that the "the iPhone 5G launch in the fall could see a month of delay," and that he expects the launch of the iPhone SE2 will be delayed "by a few months" due to "both supply issues as well as the weaker demand environment from COVID-19."

According to BofA analyst Wamsi Mohan, the launch timing for upcoming models will "depend on how production ramps back up in April and May."

Shares of Apple fell 3.8% in pre-market trading on Friday. The stock has dropped more than 10% from a record close in February, with most of the selling driven by the coronavirus. Analysts are concerned about the impact it could have on Apple's supply chain, as well as its sales.

Also read: Apple iPhone 12 may beat Samsung Galaxy S20, S20 Plus in terms of camera pixel count

Also on Friday, Deutsche Bank cut its price target to $295 from $305, citing "considerable uncertainty" related to the outbreak.

Earlier this week, iPhone maker Hon Hai Precision Industry Co. said it expects its Chinese plants to begin operating normally by the end of March.

BofA reiterated its buy rating and $350 price target on Apple, citing its "large cash balance/optionality," an expected buyback authorization, and the 5G cycle.

Follow HT Tech for the latest tech news and reviews, also keep up with us on Twitter, Facebook, and Instagram. For our latest videos, subscribe to our YouTube channel.