KEY POINTS

  • Virus outbreak fears have prompted Chinese workers to opt for working from home
  • This has led to an increase in iPad sales 
  • Production is yet to reach its full capacity

Coronavirus fears are increasingly forcing Chinese office workers to work from home leading to a surge in iPad sales in China. Even though the production of devices has been hit due to the virus outbreak, it seems that the demand is still surging.

Apple has cut down its production target for the quarter as uncertainty prevails over the availability of raw materials, components, and labor.

The report, which originated in Taiwan, has stated that online purchases are the main mode of purchase. While companies such as Apple have declared that they will resume retail operations, physical purchases are expected to be minimal due to COVID-19.

The surge in demand has led to an increase in the price of iPads which have also been sold out at many Chinese E-Commerce platforms.

“The platforms now sell 32GB and 128GB 10.2-inch iPad devices at CNY2,499 (US$355.5) and CNY3,099 (US$441 per unit, respectively, CNY200 (US$28) and CNY100 (US$14) higher than offered at Apple stores for corresponding models,” the report stated.

Accordingly to Patently Apple, manufacturers are expected to reach only half of the regular levels as production resumes after the extended Lunar New Year holiday.

Because of the difference between the supply and demand, tablet shortages are expected to go up. iPads are manufactured in China’s Chengdu city by manufacturers such as Foxconn. Currently, the plants are running at 30 percent of their total capacity.

The shortages are expected to also cause a surge in sales for Chinese companies such as Huawei, since, their plants are currently running at 50-60 percent of total capacity.

The virus outbreak has already cost billions of dollars in losses to companies such as Apple. With no vaccine or cure insight, if it stretches beyond this year, it’s impact may weigh on 2020 financial year.

Apple iPad Air and Mini Apple iPad Air and iPad Mini. Photo: Apple/Press Release