Analysts see short-term hit from Apple coronavirus warning

Apple coronavirus warningApple shares fell on Tuesday, after the company released a warning that the coronavirus outbreak would cause it to miss its guidance range this quarter. The warning was not entirely unexpected, as Apple has been dealing with the consequences of the virus outbreak for several weeks now with some manufacturing delays and the closing of retail stores in China.

Kit Rees, Amy Thomson, and Ryan Vlastelica for Bloomberg:

Analysts conceded the uncertainty and risk stemming from the virus in China, a country that is both a key part of Apple’s supply chain and a major source of revenue; nearly 17% of Apple’s 2019 revenue came from the country, according to data compiled by Bloomberg. However, they also argued that the impact from the virus would be temporary, and they still see reasons to be bullish over Apple’s long-term prospects. A similar argument was extended toward several Apple suppliers.

MacDailyNews Take: Maybe we’ll get a nice AAPL discount sale from this Apple coronavirus warning ahead of the multi-year 5G iPhone super cycle set to begin later this year.


    1. I totally agree. I recently picked up a news report that Indonesia has one testing facility in the whole country (pop. 270 million) and a similar situation is present in Thailand. There are no travel bans on these countries. It’s only a matter of time until a pandemic is declared.

      For the record there won’t be a vaccine for at least 18 months and I suspect there’ll be a hell of a lot of infections between now and then.

  1. I’d bet Apple would raise prices, rather than lower them or have a ‘discount’ sale. Since they are like any other business here with profits in mind.

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