Labor shortages due to coronavirus is threatening the production of the iPhone

the Key Apple’s suppliers are preparing for major labor shortages due to the outbreak of the coronavirus in China. Travel restrictions are expected to force tens of thousands of workers to stay in their hometowns even after extended new year holidays on February 10. This writes the Nikkei Asian Review, citing sources familiar with the situation.

According to sources, the shortage of labour may hinder Apple’s plans to increase production of the iPhone. The American technology giant had previously booked suppliers up to 80 million iPhone in the first half of 2020.

during the celebration of the New lunar year in China millions of migrant workers traditionally travel to their hometowns. This year was introduced severe restrictions on travel to stop the spread of the novel coronavirus. Many local authorities also extended the vacation for 10 days.

“if we do resume work February 10 — that’s a great question, because it seems that the increase in the number of confirmed cases [of infection] is not slowed, the Nikkei said a source in the company-the supplier of Apple. Even if we resume production, we are not sufficiently confident in the ability to deal with the coronavirus, as it is difficult to track the history of visits of returning workers and changes in the temperature of their bodies over the past two weeks… Too many risks, to control them”.

the Impact of the coronavirus in the global technology industry, which hopes for a recovery in 2020, can be serious. Analysts warn that the virus could reduce global supplies of smart phones by 10% this year.

Like Apple, the leading manufacturers of Android-based smartphones, including Huawei Technologies, Oppo, Vivo and Xiaomi, as well as laptop manufacturers such as HP and Dell, also have a large part of its production in China. Only South Korea’s Samsung Electronics is fully moved production to smartphonethe ones from China, although it still supplies components from the country.

According to the state Committee on issues of health, PRC as of Tuesday night, it was confirmed 24,324 thousand cases of pneumonia caused by a new type of coronavirus. The number of deaths from pneumonia in the country has reached 490 people.