Apple Pushing Suppliers To Ensure 5G iPhone Range Isn't Delayed: Report

Apple Inc. AAPL is pushing suppliers to ramp up production beyond the usual operations and ensure that the launch of the company's 5G iPhone range isn't significantly delayed beyond the original timeline of September, the Nikkei Asian Review reported Tuesday.

What Happened

People familiar with the matter told the Nikkei that the staff at Apple and suppliers are working overtime to make up for the time lost due to the restrictions imposed in the wake of the novel coronavirus (COVID-19) pandemic earlier this year.

"What the progress looks like now is months of delay in terms of mass production, but Apple is doing everything it can to shorten the postponement. There's a chance that the schedule could still be moved ahead," one of the sources told the Nikkei.

According to the Nikkei sources, the top-end 5G iPhone, to be launched primarily for the market in the United States, is running around two months behind schedule, and the other phones in the line are about one to one and a half months behind.

The Cupertino-based company has also reportedly reduced its target for the 5G iPhones in 2020 from the previous 100 million units to 80 million units.

Why It Matters

Wedbush analyst Daniel Ives last month noted that a "major 5G cycle" is on "the horizon" for Apple, and the timely launch of the 5G iPhone line in September was likely.

As many as 350 million iPhones are in the "window of an upgrade opportunity," according to Ives.

Price Action

Apple shares closed 0.8% higher at $364.80 on Tuesday. The shares traded 0.2% lower at $364.01 in the after-hours session.