Apple, the last company whose activity is disrupted by the coronavirus. Monday, the American group announced Monday that its forecast of turnover for the second quarter would probably not be reached because of the epidemic caused by a new coronavirus appeared in China, crucial country for the American company.
In his statement, the tech giant cited the difficulties of supplying iPhone, made in China, and demand for its products while its stores are closed in the country. "Work is starting to resume, but the return to normal conditions takes more time than we had anticipated", details the Californian group, referring to a "shortage of iPhone which will temporarily affect our income in the world".
Slowly impacted global growth
At the end of January, when record results were published thanks to strong demand for the range of iPhone 11 released before the holidays, Apple had already pointed out that the serious health crisis was causing uncertainty. The group had therefore given a range of forecast sales for its second quarter wider than usual, between 63 and 67 billion dollars.
On the production side, Apple has subcontractors in the Wuhan region, the epicenter of the epidemic, but also alternative suppliers. In terms of demand, the company specifies that it has only decreased in China. "We are in the process of gradually reopening our stores and we will continue to do so as regularly and securely as possible," said Apple, adding that its offices, call centers and online stores have never stopped function.
Since the onset of the disease in December in Wuhan (center), more than 1,900 people have died and more than 70,500 have been infected in China. IMF Managing Director Kristalina Georgieva put the impact at 0.1-0.2 points lower for global growth, but said it was still very difficult to assess the impact on the economy.
The luxury sector affected
Apple is not the first group to change its forecast due to viral pneumonia. Last week, Pernod Ricard revised down its annual objective of organic current operating income, because China is its second market, where it achieves 10% of its sales.
The luxury industry is particularly concerned. Kering (Gucci, Yves Saint Laurent, etc.) thus recorded a sharp drop in sales in mainland China and the clothing house Burberry warned of a “significant negative impact”.
Several car manufacturers are also affected by the closure of the city of Wuhan. The second Chinese manufacturer, Dongfeng, is located there, as are multiple subcontractors, as well as the French Renault and PSA. Japanese Toyota and German Volkswagen had to delay the resumption of production in their assembly plants.
High-end electric vehicle maker Tesla announced when its results were released at the end of January that its mega-factory in Shanghai would be shut down at the behest of the Chinese government, which would cause delays in production of the Model 3 and could slightly affect the group's quarterly profits. Disney, for its part, estimated that its amusement parks in Shanghai and HongKong could lose $ 280 million in total, if they remain inaccessible for two months.
- coronavirus
- Economy
- High-Tech
- Apple