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Coronavirus outbreak: Apple limits traveling to China, shuts one retail store and cutdown working hours in others

The deadly coronavirus outbreak in China has already created panic across the world.

Coronavirus outbreak: Apple limits traveling to China, shuts one retail store and cutdown working hours in others

According to Cook, the company does have some suppliers in the Wuhan area - the epicentre of the coronavirus outbreak. (Photo: AFP)

The panic led by the deadly coronavirus outbreak in China has forced tech giants like Apple operating in the region to close one of its retail stores and to cutdown working hours in others. Keeping the panic and the harm in view, the company has also decided to restrict employees’ business travel to the country.

The announcement was made by the Apple CEO Tim Cook on Tuesday.

Cook said that Apple is working very closely with its team and partners in the affected areas, and have limited travel to business-critical situations “as of last week”.

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“With respect to customer demand and sales, we’ve currently closed one of our retail stores and a number of channel partners have also closed their storefronts. Many of the stores that remain open have also reduced operating hours,” Cook informed.

“We’re taking additional precautions and frequently deep-cleaning our stores as well as conducting temperature checks for employees,” the Apple CEO continued.

Apple registered double-digit growth for iPhones in mainland China in its fiscal 2020 first quarter that ended on December 28, 2019. The company also had double-digit growth in services in mainland China and extremely strong double-digit on Wearables.

According to Cook, the company does have some suppliers in the Wuhan area – the epicentre of the coronavirus outbreak.

“All of these suppliers, they’re our ultimate sources, and we’re obviously working on mitigation plans to make up any expected production loss. We’ve factored best thinking and the guidance that we’ve provided you,” said Cook.

With respect to supply sources that are outside the Wuhan area, the impact is less clear at this time, he said and added that as per the recommendations made by the Chinese government, some of the company’s manufacturing facilities elsewhere in China will remain closed until February 10.

“The reopening of those factories after Chinese New Year has been moved from the end of this month to February 10th, depending upon the supplier location, and we’ve attempted to account for this delayed start-up through our larger range of outcomes,” Cook noted.

Cook also informed that several channel partners have also closed their retail stores.

Apple supplier Foxconn has warned employees who were in Taiwan for the Chinese New Year not to return to its Wuhan plant in China.

“While our sales within the Wuhan area itself are small, retail traffic has also been impacted outside of this area, across the country in the last few days,” he said.

Apple manufacture majority of its iPhones in China. While two of its primary plants are far from Wuhan, experts believe that the public health threat could damage company’s operations.

“The situation is emerging and we’re still gathering lots of data points and monitoring it very closely,” Cook said.

As per the reports released on Tuesday, the Coronavirus outbreak has claimed 106 lives and infected 4,151 people.

Majority of nations have urged their citizens to avoid all non-essential travel to China.

(With input from agencies)

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