Apple made it official that the coronavirus might affect apple and iPhone. The company announced today that it will not meet its fiscal second-quarter revenue target due to the pandemic.
The coronavirus affects Apple production and sales in two ways.
1) Chinese based contract manufacturers like Foxconn and Wistron had to shut down production for a couple of weeks. And it also has negatively impacted demand for Apple’s products in China.
2) Apple closed its Apple Stores in China and has slowly re-opened a number of them over a previous couple of days. But, these stores shopping hours have been reduced and customer traffic is low.
Apple said, “Work is beginning to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated.” “The health and well-being of every person who helps make these products possible is our paramount priority,”
” Apple also stated, “we are working in close consultation with our suppliers and public health experts as this ramp continues. These iPhone supply shortages will temporarily affect revenues worldwide.”
Next month, Apple is expected to unveil the entry-level iPhone 9, a sequel to its popular low-priced iPhone SE handset. But the coronavirus could put a crimp in those plans.
Starbucks and Ikea have also closed their stores in China and lots of shopping malls within the country are deserted. International airlines including American, Delta, United, Lufthansa and British Airways, have cancelled flights to China, and hotel chains around the world may feel the loss of Chinese travellers.
Fiat Chrysler Automobiles temporarily shut a factory in Serbia due to shortages of Chinese parts. the European aerospace giant Airbus has indicated it is only slowly restarting its assembly line, and automakers like General Motors and Toyota have begun only limited production in recent days.