Coronavirus forces massive AAPL hit, Microsoft earnings warning
As uncertainty swirls about the coronavirus impact technology industry-wide, industry stalwart Microsoft has issued an earnings warning, and Apple stock price continues to plummet.
As uncertainty swirls about the coronavirus impact technology industry-wide, industry stalwart Microsoft has issued an earnings warning, and Apple stock price continues to plummet.
Developers are concerned over Apple's sudden decision to start checking game licenses issued by the Chinese government for titles with in-app purchases, as the new requirement may force many games to be delisted in the regional App Store due to not having the authorization.
An Apple shareholder proposal critical of Chinese App Store policies failed to gain approval on Wednesday, but experts say a relatively high show of support from investors could prompt the tech giant to respond.
The idea Apple was failing to establish itself in India — and outsold by Samsung and Chinese brands — has been overturned by new research showing that iPhone ate up over 75% of all premium smartphone sales in the subcontinent in the fourth quarter, while also posting strong iPad, Apple Watch, and AirPod sales. Along with "double-digit" growth, Apple is also expanding its production in the subcontinent for audiences globally.
Apple has for the second time declined to attend a U.S. congressional hearing that would have scrutinized its relationship with China as part of a larger investigation into tech privacy and security.
Apple is slowly reopening its fleet of Chinese retail stores after the new coronavirus outbreak forced closures of all outlets in the region earlier in February.
The ongoing coronavirus epidemic is seemingly helping to grow tablet sales in China, with the need for remote working and education to avoid possible infection prompting higher than anticipated sales of large-screen mobile devices like the iPad in the country.
At the same time that Apple takes tentative steps to reopen all of its retail stores in China, the company's main iPhone assembler Foxconn has announced that it will be "cautiously" resuming production in its main iPhone manufacturing plants.
Apple's retail efforts in China are slowly being brought back to normal during the ongoing coronavirus outbreak, with the iPhone maker reopening 10 more stores in the country, including the first store it closed due to the epidemic.
Apple's coronavirus-related supply chain issues will be a problem for the company long into April, a report claims, as despite efforts from assembly partners, supplies of the iPhone may be constrained for some time to come.
For the second time in two years, Apple has issued a correction to its revenue guidance. After looking foolish for sensationalizing Apple's downfall last year, analysts and tech media reporters are exercising more caution in their coverage of how business interruptions by the coronavirus might affect the company.
While industry observers are clearly seeing a short-term financial and business impact from the coronavirus outbreak in China, the first analysts chiming in on the situation don't have long-term concerns surrounding Apple's financial prospects.
Industry reports suggest the low-cost "iPhone SE 2" and a refresh of the iPad Pro line will still launch in March, with the iPad Pro refresh arriving shortly thereafter —although the impact of the coronavirus raises questions about Apple's over-reliance on Chinese manufacturing.
Apple is revising its quarterly guidance downward not just a as a result of lowered sales in China because of the coronavirus, but also because of production problems in the country that are just now starting to be overcome.
Beijing's Apple Stores are open for about half the hours that they are normally, and are subjecting visitors to temperature checks and maximum occupancy limits because of the coronavirus outbreak.
As Apple deals with interruption of the COVID-19 epidemic in China, its Android competitors face all the same issues; except that they make far less money and operate on much thinner margins across fragile shipment volumes.
The coronavirus continues to spread through China, leaving many businesses and factories closed throughout affected areas. Here's how Apple and Foxconn have been impacted so far.
Apple partner Foxconn is reportedly working to return its China-based production capabilities to half strength by the end of February, a move that would bring vital supply lines back to life after being shut down due to the coronavirus outbreak.
Mastercard has been approved by the People's Bank of China to begin operating its bank card clearing business in China, opening up the potential for Apple to expand its self-branded Apple Card in the country.
The outbreak of the coronavirus, now infecting tens of thousands of people, has stoked fears that Apple would be dramatically affected both from lost sales in its China and interruptions to its component supply chain. However, while Apple has its work cut out for it it also has a uniquely proficient operations team to manage crisis events, one that has been challenged before.
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