Coronavirus : Apple lengthens the list of companies disturbed

Coronavirus : Apple allonge la liste des entreprises perturbées

SAN FRANCISCO | Apple will not achieve its sales goals this quarter due to the outbreak of the new coronavirus, a sign that the slowdown in production and consumption in China affects more and more seriously to large groups.

The health crisis also weighs on the supply and demand. The giant of the technology, citing problems with the supply of iPhone, manufactured in China, and the demand for its products while its stores are closed in the country.

At the end of January, when the publication of record results thanks to strong demand for the range of iPhone 11 release before christmas, Apple had already pointed out that the epidemic resulted in uncertainties.

The group had, therefore, given a range of forecast revenue for its second quarter, wider than usual, between 63 and 67 billion dollars.

But the american company does not intend to do it, even if the production in China ” starting to recover “.

Apple has sub-contractors in the region of Wuhan city, the epicenter of the epidemic, but also of alternative suppliers.

“The return to normal conditions takes more time than we had anticipated “, gives details of the group california, citing a ” shortage of iPhone which will temporarily affect our revenues in the world “.

The luxury sector hit

In terms of demand, the company states that it has decreased in China.

“We are in the process of reopening gradually our stores and we will continue, in the most regular and the most safe as possible,” says Apple, adding that its offices, call centres and online stores have never stopped working.

Since the onset of the disease in December in Wuhan (the centre), more than 1 800 people died and more than 72 300 have been infected in mainland China, according to the latest official figures published on Tuesday.

“Our thoughts go first to the communities and individuals most affected by the disease (…). Apple will more than double its donation previously announced to support this historic effort of public health “, said the american group.

The director-general of the international monetary Fund, Kristalina Georgieva has encrypted the impact of 0.1-0.2 percentage points less to the growth of the world, but stressed that it was still very difficult to assess the impact to the economy.

Apple is not the first group to change its forecast because of viral pneumonia.

Last week, Pernod Ricard has revised downward its annual target of current operating income to be organic, because China is its second largest market, where it achieves 10% of its sales.

The luxury industry is particularly concerned. Kering (Gucci, Yves Saint Laurent, etc) has registered a sharp decline of its sales in mainland China and the home clothing Burberry warned of a ” significant negative impact “.

Losses to Disneyland

Several car manufacturers are also affected by the closure of the city of Wuhan. The second chinese manufacturer, Dongfeng, there is implanted, as well as multiple sub-contractors, as well as the French Renault and PSA.

The japanese Toyota and German Volkswagen have had to delay the resumption of production in their assembly plants.

The manufacturer of premium electric vehicles, Tesla announced, on the publication of its results at the end of January, that its mega-facility in Shanghai is expected to be closed on the orders of the chinese government, which would cause delays in the production of the Model 3 and could slightly affect the quarterly earnings of the group.

Disney, for its part, felt that its theme parks in Shanghai and Hong Kong could lose $ 280 million in all, if they remain inaccessible for 2 months.

In Brussels, the president of the Eurogroup, the upper room of the 19 Finance ministers of the euro zone, said on Monday expected an impact “temporary” from the new coronavirus on the european growth.

“The emergence and spread of the coronavirus and its impact on public health, human lives and economic activity are a source of growing concern “, had stressed on Thursday the european Commission in a press release.