How coronavirus has affected Apple

Apple will not meet revenue targets in Q2 2020

There have been numerous reports that have pointed out that Apple’s production has been severely affected because of the coronavirus. That the production of the latest generation iPhone has stopped hastily it has certainly had to affect Apple, and we have already gone from simple speculations and reports, to official statements.

Cupertino’s company has issued a statement where he informs investors of what was already known: they will not reach the objectives of quarterly income because of the coronavirus. Specifically, this report reads as follows:

Our quarterly guide issued on January 28, 2020 reflected the best information available at that time, as well as our best estimates of the rate of return to work after the end of the extended holiday of the Chinese New Year on February 10. Work is beginning to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to comply with the revenue guide we provide for the March quarter due to two main factors.

These two factors cited refer both to limited iPhone supplies worldwide, being produced in China, and also to the lower demand of Chinese users. This makes income is not what was expected at the end of January and we will see it finally reflected in Apple’s Q2 2020 when it is expected in April. Undoubtedly, this type of communication reminds us of the one issued in January 2019 when it was reported that the economic results were going to be bad.

Tim Cook informs his COVID-19 employees

In addition to this report on the status of the supply chain, also Tim Cook He wanted to publish a note for employees. It says the following:

Equipment,

The response to COVID-19 has touched the lives of many in the Apple family, and I want to thank everyone for their dedication, empathy, understanding and care. Today, we have made more than double our donation to support the historic and global health response.

Our main concern is with the people who make up the community of Apple employees, partners, customers and suppliers in China. I also want to recognize the many people on our teams who have been working 24 hours to manage Apple’s global COVID-19 response with diligence and consideration.

Corporate offices and contact centers have reopened in China, and our stores are beginning to reopen, but we are experiencing a slower return to normal conditions than we had anticipated. This afternoon, I shared this update with our community of shareholders and investors to keep in mind that we do not expect to comply with the income guide that we provide for the March quarter. Outside of China, customer demand in our product and service categories has been strong to date and in line with our expectations. Apple is fundamentally strong, and this interruption in our business is only temporary.

Our first priority, now and forever, is the health and safety of our employees, supply chain partners, customers and the communities in which we operate. Our deep gratitude is with those who are on the front line to face this public health emergency.

Tim

As we can read, Tim Cook has wanted send a message of reassurance to your employees about COVID-19 ensuring that the safety of its employees is a priority. That is why they will recover normality always in accordance with the government’s health recommendations. It is true that this can sacrifice a little the economy of the company as it has been reflected in the note to investors.

And you, what do you think of this Apple report and Tim Cook’s statement?

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