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| Apple Signals Coronavirus’s Threat to Global Businesses | Apple Signals Coronavirus’s Threat to Global Businesses |
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| SAN FRANCISCO — Apple on Monday became one of the first companies to reveal how the coronavirus that has gripped China was affecting its business, saying it was cutting its sales expectations for this quarter, which a month ago it had projected to be robust. | SAN FRANCISCO — Apple on Monday became one of the first companies to reveal how the coronavirus that has gripped China was affecting its business, saying it was cutting its sales expectations for this quarter, which a month ago it had projected to be robust. |
| The iPhone maker, which is highly dependent on Chinese factories and Chinese consumers, said in a statement that its supply of smartphones would be hampered because production was ramping up more slowly than expected as China reopened its factories. Apple also said that demand for its devices in China had been hurt by the outbreak; it closed all 42 of its stores in the country last month and most have yet to reopen. | The iPhone maker, which is highly dependent on Chinese factories and Chinese consumers, said in a statement that its supply of smartphones would be hampered because production was ramping up more slowly than expected as China reopened its factories. Apple also said that demand for its devices in China had been hurt by the outbreak; it closed all 42 of its stores in the country last month and most have yet to reopen. |
| “Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” said Apple, one of the world’s most valuable public companies. | “Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” said Apple, one of the world’s most valuable public companies. |
| Many global firms rely on factories in China to manufacture goods as varied as socks and laptop computers. And Chinese consumers, who had ridden a wave of rising wealth, had been avid buyers of luxury goods, iPhones and many other items. | Many global firms rely on factories in China to manufacture goods as varied as socks and laptop computers. And Chinese consumers, who had ridden a wave of rising wealth, had been avid buyers of luxury goods, iPhones and many other items. |
| Fears over the coronavirus’s impact on the global economy and business have been growing. As of Tuesday morning in China, more than 72,000 people had been infected by the coronavirus and over 1,800 had died worldwide, officials reported. About three-quarters of a billion people in China are under some kind of lockdown orders, according to a New York Times analysis. | Fears over the coronavirus’s impact on the global economy and business have been growing. As of Tuesday morning in China, more than 72,000 people had been infected by the coronavirus and over 1,800 had died worldwide, officials reported. About three-quarters of a billion people in China are under some kind of lockdown orders, according to a New York Times analysis. |
| Apple’s action on Monday “is the first of many we’re going to see around the coronavirus impact,” said Daniel Ives, managing director of equity research at Wedbush Securities. “Apple is heavily exposed. It confirms the worst fears that the iPhone impact was going to be more dramatic than expected.” | Apple’s action on Monday “is the first of many we’re going to see around the coronavirus impact,” said Daniel Ives, managing director of equity research at Wedbush Securities. “Apple is heavily exposed. It confirms the worst fears that the iPhone impact was going to be more dramatic than expected.” |
| Shares in Apple were trading about 3.2 percent lower in premarket trading on Tuesday. | Shares in Apple were trading about 3.2 percent lower in premarket trading on Tuesday. |
| Apple, which is widely regarded as a bellwether of global supply and demand for goods, has bet big on China in recent years. Timothy D. Cook, the chief executive, worked with China’s telecom providers to introduce the iPhone in the country last decade. After that, Apple’s already substantial sales took off further. China is now the company’s second largest market after the United States. | Apple, which is widely regarded as a bellwether of global supply and demand for goods, has bet big on China in recent years. Timothy D. Cook, the chief executive, worked with China’s telecom providers to introduce the iPhone in the country last decade. After that, Apple’s already substantial sales took off further. China is now the company’s second largest market after the United States. |
| Apple also assembles most of its products in China. Foxconn, the Taiwan company that makes iPhones and other gadgets on behalf of Apple and global electronics companies, has declined to detail which plants have reopened since the Lunar New Year holiday ended but denied a media report that it was aiming to reach 50 percent production levels by the end of this month. None of the factories that make iPhones are in Hubei Province, the center of the coronavirus outbreak. | Apple also assembles most of its products in China. Foxconn, the Taiwan company that makes iPhones and other gadgets on behalf of Apple and global electronics companies, has declined to detail which plants have reopened since the Lunar New Year holiday ended but denied a media report that it was aiming to reach 50 percent production levels by the end of this month. None of the factories that make iPhones are in Hubei Province, the center of the coronavirus outbreak. |
| Countries including Japan and Germany have already been grappling with slowing growth. Japan, which counts on a lucrative flow of Chinese tourists, as well as exports to the country’s enormous market of consumers, may potentially fall into a recession. And there are concerns the coronavirus could crimp Europe’s already weak growth. | Countries including Japan and Germany have already been grappling with slowing growth. Japan, which counts on a lucrative flow of Chinese tourists, as well as exports to the country’s enormous market of consumers, may potentially fall into a recession. And there are concerns the coronavirus could crimp Europe’s already weak growth. |
| As the crisis over the virus has deepened, several large companies have indicated that their production may be hurt and that the damage may spill over into their financial results. China’s giant network of factories, which accounts for a quarter of the world’s manufacturing output, was sluggish in ramping up after the extended Lunar New Year holiday that the authorities imposed because of the outbreak. | As the crisis over the virus has deepened, several large companies have indicated that their production may be hurt and that the damage may spill over into their financial results. China’s giant network of factories, which accounts for a quarter of the world’s manufacturing output, was sluggish in ramping up after the extended Lunar New Year holiday that the authorities imposed because of the outbreak. |
| Fiat Chrysler Automobiles recently temporarily shut a factory in Serbia because of shortages of Chinese parts. The European aerospace giant Airbus has indicated it is only slowly restarting its assembly line, and automakers like General Motors and Toyota have begun only limited production in recent days. | Fiat Chrysler Automobiles recently temporarily shut a factory in Serbia because of shortages of Chinese parts. The European aerospace giant Airbus has indicated it is only slowly restarting its assembly line, and automakers like General Motors and Toyota have begun only limited production in recent days. |
| Starbucks and Ikea have also closed their stores in China and many shopping malls in the country have been deserted, threatening to squeeze sales for retailers like Nike and others. International airlines, including American, Delta, United, Lufthansa and British Airways, have canceled flights to China, and hotel chains around the world may feel the loss of Chinese travelers. | Starbucks and Ikea have also closed their stores in China and many shopping malls in the country have been deserted, threatening to squeeze sales for retailers like Nike and others. International airlines, including American, Delta, United, Lufthansa and British Airways, have canceled flights to China, and hotel chains around the world may feel the loss of Chinese travelers. |
| An economic slowdown for China this year could clip global economic growth by 0.2 percent to an annual rate of 2.3 percent, according to one forecast from Oxford Economics. That would be the slowest pace since the global financial crisis late last decade. | An economic slowdown for China this year could clip global economic growth by 0.2 percent to an annual rate of 2.3 percent, according to one forecast from Oxford Economics. That would be the slowest pace since the global financial crisis late last decade. |
| The next signal of the virus’ impact is expected to come on Tuesday, when Walmart is scheduled to report quarterly results. | The next signal of the virus’ impact is expected to come on Tuesday, when Walmart is scheduled to report quarterly results. |
| Apple declined to comment beyond its statement. | Apple declined to comment beyond its statement. |
| For Apple to warn that it will miss sales expectations is highly unusual. The Silicon Valley company has been one of the world’s most profitable firms and it has a cash pile of more than $200 billion. The last time it cut its sales forecast was in January 2019 — the first time in 16 years it reduced its revenue guidance — because of poor iPhone sales in China. | For Apple to warn that it will miss sales expectations is highly unusual. The Silicon Valley company has been one of the world’s most profitable firms and it has a cash pile of more than $200 billion. The last time it cut its sales forecast was in January 2019 — the first time in 16 years it reduced its revenue guidance — because of poor iPhone sales in China. |
| Last month, Apple forecast that its sales would rise 9 percent to 15 percent in the current quarter. At the time, Mr. Cook said the company had provided investors with a wider than expected estimate range because it was uncertain about the rapidly spreading coronavirus. The current quarter is usually heavily reliant on Chinese demand because the Lunar New Year holiday is a busy shopping and gift-giving period. | Last month, Apple forecast that its sales would rise 9 percent to 15 percent in the current quarter. At the time, Mr. Cook said the company had provided investors with a wider than expected estimate range because it was uncertain about the rapidly spreading coronavirus. The current quarter is usually heavily reliant on Chinese demand because the Lunar New Year holiday is a busy shopping and gift-giving period. |
| Mr. Cook said at the time that all of Apple’s suppliers in the Wuhan area were “alternate sources” — not the primary suppliers that it depends upon most. | Mr. Cook said at the time that all of Apple’s suppliers in the Wuhan area were “alternate sources” — not the primary suppliers that it depends upon most. |
| Updated June 12, 2020 | |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “We’re obviously working on mitigation plans to make up any expected production loss,” he said, adding that the impact to suppliers outside the Wuhan region was “less clear.” | “We’re obviously working on mitigation plans to make up any expected production loss,” he said, adding that the impact to suppliers outside the Wuhan region was “less clear.” |
| Of Apple’s 42 retail stores in China, it has now reopened seven, but with limited hours. The company is following government guidelines on where it can reopen stores and the hours they can operate. | Of Apple’s 42 retail stores in China, it has now reopened seven, but with limited hours. The company is following government guidelines on where it can reopen stores and the hours they can operate. |
| Even if all of the factories that make iPhones get back up to speed in China, Apple faces other challenges there. It relies on a sprawling network of Chinese suppliers to provide key components for its main devices. All of those suppliers will need to pass government inspections that their facilities are properly disinfected with proper accommodation for potentially quarantining affected workers. | Even if all of the factories that make iPhones get back up to speed in China, Apple faces other challenges there. It relies on a sprawling network of Chinese suppliers to provide key components for its main devices. All of those suppliers will need to pass government inspections that their facilities are properly disinfected with proper accommodation for potentially quarantining affected workers. |
| Apple issued its sales warning just as it was enjoying strong demand for its new iPhone models, which include the iPhone 11 and iPhone 11 Pro. After sales of the devices fell sharply for most of 2019, the company reported an 8 percent sales increase in iPhones the last three months of the year. Buzz is also building over new iPhones this year that are expected to work with faster 5G wireless networks. | Apple issued its sales warning just as it was enjoying strong demand for its new iPhone models, which include the iPhone 11 and iPhone 11 Pro. After sales of the devices fell sharply for most of 2019, the company reported an 8 percent sales increase in iPhones the last three months of the year. Buzz is also building over new iPhones this year that are expected to work with faster 5G wireless networks. |
| Apple said in its statement that demand for its product and services outside China was in line with expectations. | Apple said in its statement that demand for its product and services outside China was in line with expectations. |
| “Apple is fundamentally strong, and this disruption to our business is only temporary,” the company said. | “Apple is fundamentally strong, and this disruption to our business is only temporary,” the company said. |