The technology giant Apple recently announced their sales and production have been affected by the coronavirus outbreak and that further ‘iPhone supply would be temporarily constrained’. Making them the first major US company to say that this epidemic will cause its finances to take a hit.
With most of their Chinese based stored either being closed or operating at reduced hours, Sales of Apple product would be lower, the company has claimed. “All of our stores in China and many of our partner stores have been closed” it added. “Additionally, stores that are open have been operating at reduced hours and with very low customer traffic. We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can.” the company said.
Financial analysts have estimated that the virus outbreak may cut demand for smartphones by almost half in the first quarter in China (which is the world’s biggest market for devices). JCB, the heavy equipment manufacturer has said that it has had to cut production in the UK because of shortage of components which were due to come from China.
Despite hopes that factories and outlets will be slowly reopening and getting back to normal, Apples warning will underline that China’s economy will be seriously affected by the coronavirus and could potentially take years to recover.