Apple held its quarterly earnings call yesterday and while the main focus was understandably centered on iPhone numbers and the huge amount of money the company brought in, there were still other tidbits worth noting. Like the impact coronavirus is having on Apple and its suppliers.
During the call Apple CEO Tim Cook mentioned that Apple is going to help the groups who are on the ground, helping to contain the virus.
We’re donating to groups that are working to contain the outbreak. We’re working closely with our Apple team members in the affected areas, and our thoughts are with all of those in the region.
Cook later spoke about the impact on Apple’s employees, saying that travel has been limited to business-critical movement only.
We’re also working very closely with our team and our partners in the affected areas. And we have limited travel to business-critical situations as of last week. The situation is emerging and we’re still gathering lots of data points and monitoring it very closely.
Apple does have suppliers in the affected area of China and it has taken the potential for disruption into account when forecasting for the coming quarter.
…we have a wider than usual revenue range for the second quarter due to the greater uncertainty. I’ll talk about supply chain and customer demand some to give you some color. With respect to the supply chain, we do have some suppliers in the Wuhan area. For all of the suppliers, there are alternate sources and we’re obviously working on mitigation plans to make up any expected production loss. We factored our best thinking in the guidance that we’ve provided you.
Apple has also closed one of its stores in the area, while Cook also noted that some partners have also done the same. Of those that have remained open, many have begun operating limited hours, too.
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