Will the economy be so bad in six months that people won’t spend money on a new iPhone? Apple might think so.
Apple always announces its new iPhone in September, but 2020 could be the first time in eight years that changes.
The tech giant may be preparing to delay the release of the new iPhone, its most closely-watched launch of the year, because it’s worried that “the current situation would significantly lower consumer appetite to upgrade their phones,” according to a report from Nikkei Asian Review published last week.
The company’s top concern right now isn’t whether its supply chain will recover in time to produce the next iPhone; it’s whether there will be enough demand across the United States and Europe for Apple’s next smartphone, said a report from Reuters published just one day later.
Taken together, the reports suggest Apple is worried people may not be in a financial position to purchase a new 5G-enabled iPhone, which could cost around $1,000 if Apple’s previous premium iPhone launches are any indication.
The decision would come at a time when an unprecedented number of people are filing for unemployment in the United States, Apple’s biggest market, as the coronavirus has upended the way Americans work and spend their money. Nonessential businesses have been forced to close their doors in at least 30 states, and the outbreak has sent ripples through the airline and restaurant industries as people are urged to stay home unless absolutely necessary.