Last night, Apple announced that the company will not meet its expected targets due to the impact of the Coronavirus epidemic in China. After this announcement, the AAPL title fell over 3% in pre-market trading.
Earlier, Apple had reflected on the uncertainties that the Coronavirus epidemic would cause, while providing unusually optimistic indications. Even then, Apple had maintained a wider gap precisely in anticipation of the impact and uncertainties deriving from the virus, but no one expected such marked consequences.
The two main factors that will have an important impact on Apple’s quarterly turnover and which are the cause of this “cut” in the forecasts are the iPhone supplies, which will be limited worldwide, and the less demand of new Apple products in China.
Second Business Insider, Apple’s news has initiated a negative trend on markets around the world. The collapse was also heavily influenced by the crisis of the banking giant HSBC which decided to adopt huge staff reduction plans. The bank has announced that it will cut 35,000 jobs over the next three years. In Italy, however, despite the current market negativity, the Intesa San Paolo group has launched an offer of acquisition by Ubi Banca. This news has positively influenced our internal market, protecting it at least in part from the negative sentiment of the rest of the markets.