The Coronovirus has Led To a Big Apple Store Shutting Down Until The Outbreak Has Been Controlled
Apple has had no choice but to shut down one of its Apple Stores in China Beijing due to fears of the corona-virus spreading further. It’s stated that it will delay about 1,000,000 iPhones over the time that the store is closed.
“We believe with the limited transportation in major cities throughout China and limited foot traffic in Shanghai, Beijing, and other cities that at most ~1 mm iPhones in the region could be at risk of shifting out of the March quarter into the June quarter if this continues into late February,” analysts Daniel Ives and Strecker Backe wrote.
Whole Beijing Store Closed For Peoples Own Good
Since a huge amount of China are fans of Apple the stores in Beijing can be overwhelmed with customers which is great for business, bad if you have a potential outbreak emergency that could be spread. Its honestly for everybody’s own good, if a healthy un-infected person goes into an Apple store and picks up a demo product that has been touched by somebody with the virus then their life is at an extreme risk.
This does unfortunately mean that Beijing will struggle with buying new iPhones or iPads from the official Apple store, products can still be ordered and delivered from the Apple website however so it’s not as big of an issue. Apple also decided to close the store in order to keep their staff safe from the virus that could be transmitted through helping a sick customer for a period of time, this reinforces the fact that the infection is real and it’s a threat that could get worse unless more stores follow in the footsteps of Apple even with the decreased profits and time delays.
“While the corona-virus outbreak is a sad situation and concerning headline for investors, for the stock we believe the fundamental impact from this issue to Apple’s top-line is negligible especially as this year there were no major price cuts or last minute sales around the Chinese New Year, which we have seen in prior years to spur sales in the key region.”
Apple was obviously going to lose a large amount of money after closing its store but they aren’t hurting for money right now, Apple reported a $91 million in its last quarter over $56 million were generated through the sale of iPhones which makes them the fuel for Apple that keeps the revenue coming in. Thats all the information we have on the unfortunate catastrophe but at least its a very small step that helps to cure this virus.