Tim Cook and Apple Bet Everything on China. Then Coronavirus Hit.
Tech giant Apple acknowledged that it would not get the expected revenue for the first quarter of the year due to the coronavirus outbreak, which has hurt the sale and production of iPhone phones in China, the company said in a statement released this Monday.
"We do not expect to meet the revenue we had anticipated for the March quarter," the company admitted.
The Apple company has a heavy reliance on China: it makes a fifth of its sales in the Asian giant and relies on Chinese workers to manufacture and assemble much of the components of its iPhones, iPads, and Mac computers, which, then, sells worldwide.
Apple is one of the first companies to recognize that it will suffer consequences for the impact of coronavirus.
That's why Apple acknowledged on Monday that both the sale and production of its products had been affected by the coronavirus, which already leaves more than 1,800 dead in China alone.
"The shortage of iPhone supplies will temporarily affect worldwide revenue," he stressed.
Explicitly, he explained that the production of their iPhone phones has declined because Chinese employees are re-employment "slower" than anticipated.
And he also claimed that demand in China has also fallen. "All of our stores in China and many of our partners' stores have been closed. Also, the open establishments are operating with reduced hours and very few customers," the firm said.
The corona virus isn't just effecting peoples health, it is effecting business such as Apple who heavily relies on China for producing their products. Many other companies also depend on cheap Chinese labor to make as much profit as possible. This should change because now they are losing many because a virus is stopping people from working affecting their lively hoods.
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