"I can't imagine a scenario where the supply chain is not disrupted" These were the words of veteran electronics industry analyst Patrick Moorhead about the coronavirus crisis and how it could affect the production of iPhones and other electronics

If you wanted to know why the market is all up in arms about the Wuhan virus when it may not yet be a major threat in the US, here's your answer China, the number one producer of commodities on the planet, is now in a complete panic, shutting down entire cities and restricting communications in the largest quarantine operation in history

That is why it is sort of preposterous to think that this operation will not affect domestic supply lines

The epicenter of the coronavirus outbreak is believed to be China's "central hub of transportation and industry"

Not only is the region one of the major steel production centers, but it is also crossed by the Yangtze River, has three railroad stations and an airport, and is considered "an important hub in central China It is also a major production center for the automotive industry, electronics, optics, and fiber optics In fact, 230 of the Fortune 500 companies have invested in the region

The virus has reportedly killed 106 of the 4,515 people infected in the Asian country as of this writing And its effects will ripple throughout the country's industrial network, even down to the coastal centers where consumer electronics are manufactured for Western companies like Apple

Indeed, speaking to Bloomberg, Moorhead said of the new iPhone SE 2 (also known as the iPhone 9), "If there is one major hiccup in raw materials, manufacturing, assembly, testing, or shipping, it will be a disruption"

And that has nothing to do with the fact that the factories that make that phone in Zhengzhou and Shanghai are more than 300 miles from the point of contagion; according to Bloomberg's Matthew Kanterman, these companies are on full alert and in damage control mode

Foxconn has stated this, but refrained from giving specifics as to how production will be affected and whether production is being disrupted at this time

We will know soon enough, as the impact of the virus could affect the release date of the iPhone SE2, which is scheduled to go into production next month for a March release This will be the first real test for both Apple providers Whether or not there will be a delay from the rumored release date, or if the final release date is met, this will surely be one of the most popular iPhones on the planet