Noted Apple analyst from TF Securities, Ming-Chi Kuo, has reportedly predicted that the coronavirus outbreak may affect Apple's sales in this quarter. According to Kuo's survey, the company might experience a sales drop of 50 percent to 60 percent during the Chinese New Year 2020.
Apple recorded a revenue of $13.17 billion during last year's Chinese New Year. Though the amount appears enormous, in the 2018 Chinese New Year, the figure was $17.96 billion. According to Kuo, Apple sent around 360 to 380 million iPhone units to China in 2019, which might fall to 310-330 million units in 2020. Alongside coronavirus, Kuo has said the overall demand for 5G smartphones is low, which might also affect Apple's sales in 2020.
Apple shuts shop temporarily in China
Apple has temporarily closed down all its corporate offices, contact centers, and stores in China. The iPhone-maker has announced closure till February 9 which might extend according to the situation, stated Appleinsider.
"Out of an abundance of caution and based on the latest advice from leading health experts, we're closing all our corporate offices, stores and contact centers in mainland China through February 9," the company said in a statement.
Working on a backup plan to tackle supply problem
Apple has more than 40 stores around mainland China. Most of the iPhone models are assembled by various OEM manufacturers, including Foxconn. Foxconn's Taiwan-based factory is open where iPhone production might be up and running. Apple CEO Tim Cook has said that Apple is already working on a backup plan to tackle the likely significant disruption of iPhone global supply. The company is rumored to launch its affordable iPhone 9 in March this year. It may also come up with at least four premium iPhone models in the latter half of the year.