The Giant multinational technology company Apple warns of shortage of supplies as its revenue is hit by COVID-19 pandemic.
Apple, the America giant telecom company, warns on Monday that the current COVID-19 situation across the globe is hurting it’s business more than expected as demands and supply has drastically reduced since the outbreak of the pandemic in China.
In its regular investor updates, the company made it clear that it is not meeting up with the expected revenue forecast as provided last month, which is the March quarter.
The company admitted that they are experiencing a slow return to normal business activities than it was anticipated, even though work is gradually returning to normalcy.
The vast majority of apple manufacturing operations are in China, which had been struck by the COVID-19 pandemic, and more than half the population is living under some form of travel restrictions.
We are so concerned about the wellbeing and health condition of everyone responsible for making our products a reality. We are working closely with our suppliers, consultants, and even the public health experts as the pandemic persist apple said. Indeed, the iPhone market supply will temporarily affect revenue across the world.
Apple’s AAPL stores in China are temporarily closed. While the stores are opening up gradually, patronage is very low as hours of sales are drastically reduced.
We expect that business disruption will be temporary. In general, the iPhone sales are sliding 8% upward to nearly $56 billion in the past few months of 2019
Most international firms and companies have short down their operations and offices because of the COVID-19 virus. Thankfully, some of the companies are starting to reopen, but the situation is not still not business-friendly as usual.
Huawei also recently reopened its own Shenzhen headquarters when it employs some 40,000 people. Their decision was also in line with the local guidelines that give companies the leverage to operate.
Surprisingly, the employees did not return to the same working environment they left off in January. So, when the resume work every morning, Huawei workers must provide details of their body temperature and where they’ve been in the last two weeks. Body temperature is also checked at almost all offices, public buildings and in parking lots, hand sanitizers and face mask are dispensed inaccessible places in the campuses.
Baidu (BIDU), another top China’s search engine said that they are also reopening their offices, but workers who come in must all meet the quarantine conditions and that they can only come back to work after approval the company pointed out in its internal memo as seen by CNN Business.