Wedbush analyst Daniel Ives says, the Apple Retail Store closures in China likely won’t cause the loss of significant sales. Apple’s decision to temporarily close all of its 42 stores in China is due to the 2019-nCoV coronavirus outbreak.
Wedbush Securities analyst Dan Ives wrote in a note over the weekend that he sees at most one million iPhones at risk of being sold in the June quarter rather than the March quarter as a result of the store closures. That’s just 3% of expected Chinese iPhone annual unit sales and is “a very containable risk,” said Ives, noting that Apple’s online store in China remains open and that much of the recent buying of iPhones and AirPods in China has already taken place in the lead-up to Chinese New Year, which began on Jan. 25.
“With the vast majority of sales online we view a one-week closure of Apple stores as having a negligible impact thus far despite the scary and concerning headlines from the region,” Ives wrote. “We do not view the impact of this virus epidemic as changing the numbers/merits behind the renaissance of growth in China for fiscal year 2020 and fiscal year 2021 with a 5G super cycle the longer term driver.”
MacDailyNews Take: Obviously, companies like Apple are hardest hit by coronavirus fears due to revenue exposure and operations in China. This too shall pass.