Apple closes two additional stores in China due to Coronavirus outbreak
Something that has filled the news over the last few weeks is the growing concern and panic over the sudden spread of the Coronavirus. Apple had already closed some of it stores, with Starbucks closing their stores, Google closing their offices and multiple airlines stopping direct flights or limiting flights to China. During Apple’s Q1 2020 earnings call yesterday, Tim Cook confirmed that one of the stores in Qingdao, China had been shut down.
This brings three Apple stores closed in the region whilst the Coronavirus outbreak continues. Apple does plan to reopen the Nanjing and Fuzhou stores on February 3rd, while the store in Qingdao will reopen on February 4th. Apple, like many other companies operating in the region has limited employee travel for just ‘business critical’ operations, and is providing care kits for employees that are located in Wuhan and other locations in China.
Currently, 6000 cases of Coronavirus has been confirmed, with a majority of them in China. However, as time progresses the virus has started to spread in other countries, with the first cases confirmed in the UAE and Europe. Some of the factories that Apple supplier uses are going to be closed until February 10th due to Chinese New Year and the outbreak that Tim Cook said Apple is working to manage and avoid an impact on production.
Apple is said to be gathering data points whilst the virus continues to emerge and spread. They said that they are experiencing a sales slowdown due to the closing of their retail stores, and the fear of leaving their houses due to the outbreak and the fear of infection. Apple as a result set its next quarter guidance at $63 to $67 billion, which is a large range. Cook said that the range is reflective of the ‘coronavirus and the uncertainty around it’.