Apple closes Wuhan store in anticipation of coronavirus infection

Expected revenue range for next quarter widens as outbreak intensifies

Apple has officially closed one of its retail stores in Wuhan, China, the city that’s at the epicenter of the deadly coronavirus outbreak. 

In a transcript of the company’s revenue call – posted on financial information site Seeking Alpha – CEO Tim Cook and CFO Luca Maestri assured that Apple is closely monitoring the status and spread of the infection across China to lessen the disease’s impact. To date, Chinese officials have confirmed 132 people have died and over 6,000 have been infected by the virus. 

Advertisement - Article continues below

The degree to which the outbreak will affect Apple’s production across China is still unclear, although Cook referred to suppliers in the Wuhan area as “ultimate sources” for manufacturing. If the disease continues to proliferate, Apple is expected to employ “mitigation plans to make up any expected production loss”.

Outside Wuhan, the reopening of Apple supply source factories – closed in celebration of the Chinese New Year –  has been delayed from the end of this month to 10 February. In an effort to help isolate the disease, Apple has also “limited travel to business critical situations” for employees living within affected regions.

“The situation is emerging and we’re still gathering lots of data points and monitoring it very closely,” said Cook. “We have a wider than usual revenue range for the second quarter due to the greater uncertainty.”

Estimates for Apple’s fiscal 2020 second quarter revenue were reported to be between $63.0 billion (£48.4 billion) and $67.0 billion (£51.5 billion) – a direct contrast to the success of Q1, which saw the company collecting a record-breaking $91.8 billion (£70.6 billion).

Featured Resources

Top 5 challenges of migrating applications to the cloud

Explore how VMware Cloud on AWS helps to address common cloud migration challenges

Download now

3 reasons why now is the time to rethink your network

Changing requirements call for new solutions

Download now

All-flash buyer’s guide

Tips for evaluating Solid-State Arrays

Download now

Enabling enterprise machine and deep learning with intelligent storage

The power of AI can only be realised through efficient and performant delivery of data

Download now

Recommended

Visit/security/privacy/355241/privacy-of-apples-coronavirus-screening-app-comes-under-fire
privacy

Apple's coronavirus screening app comes under fire over privacy concerns

6 Apr 2020
Visit/security/cyber-security/355234/safari-bug-let-hackers-access-cameras-on-iphones-and-macs
cyber security

Safari bug let hackers access cameras on iPhones and Macs

6 Apr 2020
Visit/security/privacy/355231/facebook-tried-to-buy-spyware-firm-its-now-suing-to-monitor-ios-users
privacy

Facebook tried to buy NSO Group's Pegasus spyware to monitor iOS users

6 Apr 2020
Visit/mobile/mobile-phones/355225/report-apple-to-keep-us-stores-closed-until-may
Mobile Phones

Apple to keep US stores closed until May

3 Apr 2020

Most Popular

Visit/mobile/mobile-phones/355239/microsofts-patent-design-reveals-a-mobile-device-with-a-third-screen
Mobile Phones

Microsoft patents a mobile device with a third screen

6 Apr 2020
Visit/development/application-programming-interface-api/355192/apple-buys-dark-sky-weather-app-and-leaves
application programming interface (API)

Apple buys Dark Sky weather app and leaves Android users in the cold

1 Apr 2020
Visit/software/video-conferencing/355229/zoom-we-moved-too-fast
video conferencing

Zoom CEO admits company "moved too fast" as privacy issues mount

6 Apr 2020