Any commercial activity is almost always dependent on external factors. However, most often the role of this factor takes the political situation in the country where the entity conducts its business. As a result, if it is popular enough, she has to go to all sorts of compromises in order to have the opportunity to continue to do what she was doing. For this reason, Apple without much bickering removes from the regional App Store objectionable to the local authorities application blocking technology and interfaces that intelligence agencies of the host country is considered dangerous for national security, and even makes various changes in the design of their devices, but would not go beyond the rule of law. It is one thing when a company does something on their own, albeit with slight pressure from the outside, and absolutely another – when her opinion nobody is interested at all. For example, in the case of coronavirus.
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2019 coronavirus-nCoV, the spread of which began in the Chinese city of Wuhan, for more than a month is one of the main topics for discussion throughout the world. And how could it be otherwise, if the approved methods of treatment yet, but the number of new infected is growing at such a pace that even a little bit and can be considered a true pandemic. Of course, this could not affect Apple’s business is strongly affected. Despite the fact that the assessment of loss has not stopped, we can already draw some conclusions about how the coronavirus has affected the company and its operations.
Why stop production of the iPhone
All, oddly enough, started quite gently. Factory workers Foxconn, the capacity of which is made by Apple, went on vacation on Chinese new year. However, to go out with them they were not meant, because the local government decided that in order to prevent the spread of coronavirus to thousands of collectors working all together, to work better not to go. So pretty quickly it became clear that the delivery of new shipments of branded Apple devices, including in Russia, – for some time suspended.
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Then there was the closure of several Apple Store in China, located in the vicinity of the focus of the spread of coronavirus, on its own initiative, Apple. Thus the company wanted to prevent mass gatherings of people, as for many corporate Apple stores are a magnet and not afraid of the word, pilgrimage. However, it quickly became clear that for maximum effect, you must close all the halls that in Cupertino have done. Another thing that the closure was supposed to last only a week, but on 9 February, the day of the scheduled opening, Apple announced that it was postponing the opening indefinitely in connection with the rampant coronavirus. Yes, customers can still order products via the Internet, and apparently they even deliver, here only very soon and order will have nothing.
When will the iPhone 9
Around the same time, the Chinese government decided to open the plants would be ill-advised, but because they took and extended forced vacation for an indefinite period. Because of this, probably not even Apple could begin production of the iPhone 9, which, according to rumors, is expected to be available in March. So even if Cupertino would find a way to start building is likely to release a sufficient volume of smartphone to satisfy the expected high demand, the company will fail. However, the Apple business rests not only on smartphones but also on other equipment with which it is experiencing obvious problems. For example, the production of AirPods Pro was stopped entirely, and Mac Pro, although its Assembly seems to be not stopped, the USA is suddenly in short supply.
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Decide whether the Apple fell on her problem? It certainly does. Together with Foxconn, they decided on a partial transfer of production to India. There Foxconn has several factories, which can ensure the Assembly approximately 30% of the total Chinese capacity. It’s little, but better than idle and lose money in future can generally fly out the chimney. After all, if you will sell nothing, no 63 billion revenue planned by Tim cook for the next quarter, nothing to say. Another thing is that in India Apple uses local suppliers that produce components for older models of the iPhone, and therefore not very clear how the company will solve the issue with dolyushka iPhone 11.
Apple has benefited from the coronavirus
But there are positive aspects. Due to the fact that people, for fear of infection, have less to go out and spend more time at home or in the premises, significantly increased the demand for apps and games from the App Store. According to analysts ‘ estimates, as of February in China alone the number of downloads increased more than 30%. Well, since there’s no end to this epic coronavirus is not yet in sight, most likely, the growth of the App Store will continue, but not only in China but also worldwide, where the disease is chosen quite systematically.
See also: coronavirus prevents the use of iPhone
What all of this will be the outcome, yet difficult to predict. No matter what anyone said about the unreality of the coronavirus and propaganda from the pharmaceutical companies wanting to cash in on the General panic and the desire not to be infected, you need to believe what is seen. And personally, I see large corporations like Apple, Foxconn and others are now in the most advantageous position. I doubt that if the virus didn’t actually exist, they would be so easily closed their shops and production lines. That’s just to defeat the virus yet not, and therefore, its distribution will continue and the Corporation to incur large losses.