Coronavirus threatens Apple’s China supply chain, shares tumble

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Coronavirus threatens Apple’s China supply chain, shares tumble

On Tuesday, the 18th of February 2020, shares’ prices of the Cupertino-based iPhone manufacturer, Apple Inc., tumbled as much as 3 per cent in the pre-market trading after the tech tycoon had raised an alarming bell over its sales on current quarter adding that the coronavirus-related supply chain disruption had started off weighing on its sales and production lines.

Aside from that, the iPhone maker was also quoted saying in its Tuesday’s (February 18th) statement that despite assembling plants in China had begun to reopen, the outputs remained much lower-than-anticipated, meaning there would be fewer China-made iPhones for sale over the first quarter of the year.

On top of that, although the Cupertino, CA-based iPhone manufacturer had forecasted a quarterly revenue of $63 billion to $67 billion over the first quarter of the year, revenues would likely to be battered hard amid an en masse supply chain disruption in China since iPhone assembling facilities in China were reportedly operating at a 25 per cent utilization rate, suggested analysts.

Meanwhile, following Apple Inc.’s gloomier forecast in sales and production for Q1, 2019, the iPhone maker had evaporated nearly $30 billion of its market cap in the pre-market trading, while on Tuesday’s (February 18th) Wall St., shares’ prices of Apple Inc. had wrapped up the day 1.83 per cent lower to $319.00 per share.