Coronavirus might hinder the production of iPhone SE(iPhone 9).

Chinese government has extended the Lunar Holiday due to the outbreak of coronavirus.

Photo by Drew Coffman on Unsplash
iPhones are majorly manufactured in China.

The outbreak of the coronavirus has lead to more than 100 deaths in China and made several more ill.  A person affected by coronavirus will suffer from common cold, cough and respiratory problems, the virus has being spreading out to other countries outside china too.

First Reported by Bloomberg, Coronavirus is not only affecting the public health but it's affects started to fell on tech industry, most of the Apple's iPhones are manufactured in China, majorly by by Foxconn’s Hon Hai Precision Industry Co. in Zhengzhou and also by Pegatron Corp. at an assembly site near Shanghai, these location are safely distant from major virus outbreak city Wuhan but they seem to be affected by the coronavirus anyway.

Patrick Moorhead of Moor Insights & Strategy said:

                               "I can’t imagine a scenario where the supply chain isn’t disrupted," Patrick Moorhead said "If there’s one major hiccup in the raw materials, fabrication, assembly, test, and shipping, it will be a disruption."

Apple is planning to mass produce the low-end iPhone SE (or) iPhone 9 in February and it seems those plans may not come to fruition judging by the circumstances. 

Analyst Dan Ives of Wedbush Securities Inc. said:

                           "Supply chain disruption is a worry if employees across Foxconn and other component manufacturing hubs in China are restricted," Dan Ives said "If the China outbreak becomes more spread it could negatively impact the supply chain which would be a major investor worry."

Henan province, where the Zhengzhou facility is located has seen a raise in coronavirus cases, this may lead to government closing the factories in order to prevent further contamination, wrote Bloomberg Intelligence analyst Matthew Kanterman.

Apple doesn't have any stores in Wulan but have many retailers who sell the Apple products, while Apple doesn't announced any closing of the retail shops but shortened the opening hours of the  several shops through Feb. 7, this may be because of the extension of lunar holiday by the government to control the virus.

Foxconn said 'We can confirm that we have measures in place to ensure that we can continue to meet all global manufacturing obligations." although decline to comment on production in specific locations.