Apple warns coronavirus epidemic will worsen second quarter 2020 results

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Apple told its investors on February 17 that it expects lower than expected revenues for the second quarter of 2020. At issue: the Covid-19 coronavirus epidemic, which temporarily paralyzed its production lines in China and has consequences for its sales in the country.

APPLE CONSTRAINED TO REVIEW His calendar

The Cupertino company confirmed by press release that "activity resumes more slowly than[she] hadn't considered it ". It stresses that it will not be able to supply the 80 million iPhones it ordered for the first half of 2020, published on January 28 in its quarterly forecasts and relayed by the Nikkei. If the company indicates that its partner factories – notably those of its subcontractor Foxconn – have resumed their activity, because they are located outside the epicenter of Covid-19, the health protection measures which strictly regulate the working conditions on site have the consequence of slowing down their production.

A damaging situation for Apple, which should be forced to postpone the launch of a "low-cost" iPhone, initially planned for spring and potentially baptized iPhone 9, according to rumor, even that of an iPad Pro with cameras more efficient.

DEMAND HAS BEEN VERY ALLOCATED IN CHINA

The American company claims to have taken its own precautions, making "the health of [his] employees a top priority ". It therefore preferred to close all of its 42 Chinese Apple Stores for several weeks, as did many authorized resellers, causing a considerable shortfall. Over this period, its activity in the country was therefore based entirely on orders placed via its website. "The demand for our products has been affected in China. The few stores that remained open have, moreover, recorded a lower attendance during this period", commented the company, which says it will gradually reopen its stores.

According to Apple, its results in other markets will be in line with its forecasts. The company is expected to provide further details on the situation in April. Note that the latter took advantage of this exceptional communication to express its intention to "more than double" his donation in favor of research against the coronavirus. If its CEO, Tim Cook, had said on Twitter that he wanted to make this gesture in a burst of generosity, he did not specify the amount he wishes to commit for this cause. Other tech giants to have pledged financial aid include the Americans Microsoft and Dell, as well as the Chinese Alibaba.

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