A recent Goldman Sachs investor note says that Apple is delaying the introduction of its widely awaited iPhone 12 until November. In addition, the investment bank — which on the Apple Card also happens to be partners with Apple — downgraded Apple’s shares to a rare “sell” ranking.
Goldman Sachs analysts expressed in a note obtained by Reuters that the economic downturn caused by the coronavirus would have a pronounced effect on iPhone upgrades. Simply put, the note argues that when they purchase a new smartphone, iPhone owners “can keep devices longer and prefer less costly Apple options.”
There’s still no indication at this stage when the coronavirus pandemic is going to begin to subside. Moreover, the effect of the novel coronavirus on the U.S. economy was significant, and can not be overestimated. Unemployment claims are at record highs and an estimated 10 percent of the entire U.S. population is now without jobs. All of this being said, it is fair that many customers who may otherwise be interested in upgrading to the iPhone 12 would likely not be in a financial position this year to do so.
To this end, a Nikkei report last month explained how the coronavirus has impacted iPhone 12 development:
“The engineering development of the 5G iPhone has also been affected by travel curbs introduced in the U.S., China and elsewhere to combat the coronavirus, two people with knowledge of Apple’s schedule said. The company was supposed to work with suppliers to develop a more concrete prototype for the new phones from early March, but it had to delay such close collaboration, which requires hands-on testing, until the end of the month, before postponing it again due to the worsening pandemic in the U.S.,” they said.
However, the most likely evidence suggests that Apple is tracking the situation on a regular basis and that sometime before June executives are trying to work out an official release plan.