The severe outbreak of coronavirus has totally changed the scenario of 2020 and as one of the world’s largest economy has fallen down, the total world is facing economic tensions. The tech industry has been well affected because China is the heart of all kinds of tech manufacturing and supply as well.
Thousands are infected and thousands have died as well, and in such situation, China is completely shut down and no work is being held currently to fight against this deadly outbreak. It is said that with time, the infection rate is decreasing but the death rate is increasing daily.
In such a bitter situation, the MWC 2020 has already been called off as the top brands have already stood for the people rather than being keen on selling their products. Chinese smartphone giants like Xiaomi, Huawei, Oppo, Vivo and Realme all have been affected and the Cupertino giant has been affected as well.
Apple not only has one of the biggest iPhone markets in China but also makes their iPhone in the country as well. So the supply chain restrictions and falling demand in China have led Apple to drop revenue estimates in Q1 2020.
In a post on its newsroom website, Apple has stated that “Apple will not be able to meet the revenue guidance [it] provided for the March quarter due to two main factors.” :
- The first reason is that the iPhone’s supply chain has been temporarily constrained due to the closure of factories and production facilities in China.
- As fewer iPhones are being produced and supplied, prices have gone high as well, decreasing the sales ultimately.
The coronavirus outbreak is not the sole reason for this decline in revenue in the country, the US-China trade war and the tensions speculated to Huawei and other Chinese smartphone brands in the country have also resulted in the decline in iPhone sales in China.
China is facing one of its worst epidemic outbreaks ever and it is natural for Apple to see a huge loss in the coming months, and not expect to meet its revenue predictions, Apple’s stock (AAPL) fell roughly by 3% when trading opened on Tuesday morning.
The increasing cause of the virus has halted the global economy not only for Apple but for every tech giant out there. No interaction or business is conducted by any country to China which is affecting every industry, but we hope soon China recovers through these hard situations in the coming months.
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