Article Summary: Apple to delay mass production of 2020 flagship iPhones by Reuters
The article discusses the effects of the coronavirus pandemic on the production process of Apple. Apple is planning to release some new models of iPhones in the late stages of this year. The four new models will have a 5G feature that enables faster internet connectivity and little time of response. Apple incorporation will delay the production of its flagship iPhones that will hit the market this year by over a month. The company will delay the release of its products since market demand has been affected by the coronavirus disease spreading worldwide. Additionally, the manufacturing process has been disturbed in Asia and other parts of the world. Apple is also reducing the number of the mobile phones that it projects to produce in the second half of this year by approximately 20%. The company usually launches new products in September released a low price iPhone this month.
This article is essential since it portrays how external factors can affect the demand for a product hence its production process. When factors like the coronavirus pandemic reduce the need, the price of a product also goes down. Once the price is has dropped, the profits will be smaller; hence the suppliers have to act accordingly to revert the economy to equilibrium. The market equilibrium is restored by reducing the excess of supply through reduction of production. This is an excellent example of business management and response to prevailing market conditions. Apple has responded adequately to a decline in demand in the market by creating an artificial shortage and reducing supply.
References
Reuters (2020, April 27) Apple to delay mass production of 2020 flagship iPhones. Retrieved from https://m.economictimes.com/news/international/business/apple-to-delay-mass-production-of-2020-flagship-iphones/amp_articleshow/75407573.cms