While Apple has been saying that the Coronavirus outbreak will not affect their sales, things might be different now. The viral outbreak in China’s Hubei province has forced Foxconn to keep its factories shut until February 10, at least.
This is expected to have heavy consequences for Apple since Foxconn is one of Apple’s biggest manufacturers and is expected to hit the 2020 iPhone lineup. According to reports, Apple is braced for a 10% drop in iPhone shipments.
Apple has also shut its stores and offices in China until February 9. “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,” Apple said in a statement adding that they are looking to reopen as soon as possible
Of course, Apple is not the only company shutting stores and offices as precautions. Google has also temporarily shut down all offices in mainland China, Hong Kong and Taiwan.
Apple and Google joins other companies like Starbucks and McDonald’s in temporarily shutting storefronts as precaution. Other companies have asked their employees in China to work from home and stop non-essential business travel in the first week of February. Many factories in Hubei province, including plants run by AB InBev and General Motors Co, have also temporarily suspended production due to the virus.
Foxconn had issues a statement last week where they said that iPhone shipments would not be slowed down and they had taken measures to continue to meet manufacturing obligations. These measures include shifting production to factories in Vietnam, Indian and Mexico for the time being.
Foxconn is also planning to issue overtime shifts after they reopen to make up current delays.
