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Apple shares drop after iPhone 12 delay report

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On Wednesday, late in the day, stock of Apple dropped after the world’s largest financial newspaper Nikkei Asian Review reported that the launch of the iPhone 12 could be delayed. The COVID-19 outbreak has affected small & large companies along with their manufacturing plants.

According to Nikkei, the iPhone could launch months later than the usual release month. Apple relies on Foxconn for manufacturing and assembling its products. As a result of the report, on Wednesday, Apple’s stock closed at $245.52 – down 0.55% after the report started circulating. 

Positive before the report

On Wednesday, before the Nikkei report had gone viral, Apple’s stock was positive and growing. Also, the company had hit a peak of $257.89 during its inday trading. CNBC tried to contact Apple but the company declined to comment on any of the matters at hand. 

JP Morgan had also very recently revealed that it predicts that the launch of the next flagship iPhone will be postponed. To be specific, JP Morgan suggests a delay of one to two months at the most.

Apple shares drop after iPhone 12 delay report 1Apple shares drop after iPhone 12 delay report 1

Similarly, noted Bloomberg reporters have also suggested that the 2020 iPhone could launch at a later date than usual. The COVID-19 outbreak has ofcourse affected the manufacturing but it has also made the electronics a little less “exciting” for for time being and Apple could very well be thinking of releasing the iPhone at a more appropriate time.

The iPhone 12 is speculated to be the first device from Apple to support the latest 5G network technologies. Major tech companies have begun analyzing the demand for their high-end products and also predict the sales to not overproduce.

Largely due to the coronavirus outbreak, the global smartphone shipments in February dropped by 38% year-over-year, according to the research firm Strategy Analytics

Apple employees in the US have been given work-from-home order for the time being.

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