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Demand for Apple iPads surges as people work from home due to coronavirus lockdown

Increasing demand and lack of supplies have led to a rise in price as well.

February 25, 2020 / 11:57 AM IST

COVID-19, also known as coronavirus, has led to a temporary shutdown of multiple manufacturing plants and offices across countries. While this has hampered production and product shipments, demand for Apple iPads has reportedly bumped as people stay home.

Analysts were expecting weaker shipment and sales figures of tech products during Q1 2020. However, rising demand for iPads has surprised everyone. Employees working from home in China is said to be the reason for the surge in sales, DigiTimes reported. The report states that although there has been a rise in sales, production is getting hit due to shortage of raw materials, components and labour.

“To prevent the spread of the virus, many office workers in China have been working from home. Numerous schools have also launched online teaching courses for students staying at home, stoking demand for tablets during the usually slow season for the device,” the report said.

Since the brick-and-mortar stores are closed due the lockdown, consumers are purchasing the iPad from various e-commerce platforms. Increasing demand and lack of supplies have led to a rise in price as well. “Platforms now sell 32GB and 128GB 10.2-inch iPad devices at 2,499 yuan ($355.5) and 3,099 yuan, 200 yuan and 100 yuan higher than that offered at Apple stores, respectively,” the report stated.

Apple suppliers are reportedly ramping up production outside China, which is likely to prove beneficial for Apple to reduce its reliance on a single country. The company has also opened some of its physical stores in China after a two-week shutdown.
Moneycontrol News
first published: Feb 25, 2020 11:42 am
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