On Monday of last week, Apple announced that they would not be able to achieve their Q2 2020 goals. The company finished to be led given by analysts and investors over the past few weeks. And he did so without giving any further guidelines, which he will have to wait for at the shareholders' conference next April.
Fear often leads to such a decision it has not been transferred to markets. Contrary to what happened with profit warning from last year. What is the difference between the two cases?
How coronavirus affects Apple
As things stand, it's easy to review how the COVID-19 outbreak is affecting Apple's performance. As far as we know, human movement in China is restricted In some regions. The Apple Store is always closed and by the time they reopen, they do it at limited hours.
Naturally, keeping the stores closed has a direct impact on the demand for products, especially the iPhone. Online sales should continue to function normally. Maybe even experienced duplication, and services (more time at home, more digital use). But there will be a good part lost or lost. In this case, it will be interesting to see if certain sales are going the wrong way in other areas.
Coronavirus has also contacted Apple on the production side. The return of Chinese New Year holidays has been delayed and has urged Foxconn staff to wait for news of their return. Foxconn is the convention's main partner Apple in China and other neighboring countries, so its impact is important.
Apple has no choice but to ensure the safety of its employees and partners, both in the store and in production lines. But it can divert the production part and other countries to try to minimize the negative effects of this outbreak.
Apple's two-way correction
He profit warning Apple, released January 2, 2019, caused a decrease within hours of 8.6%. Once the markets are open, Apple's stock is down again. At that point, the company began forecasting revenues between $ 89,000 to $ 93,000 to only "84,000". An important deviation of their guesswork prompted a warning for analysts.
At the time, we realized that it was a situation that was defined from the decline of the Chinese economy and, in particular, of the trade dispute between the US and the Asian powers. So, not only did it affect Apple but and also to Samsung, LG, Baidu, Adidas, Disney and many other companies from different sectors.
Just overcome this obstacle, Apple shares gained. And in the weeks begins the bullish cycle which puts it down from $ 150 in early 2019 up to $ 313 At the time of writing these lines. In the case of COVID-19, the situation was different.
Coronavirus is affecting Apple in the middle of the quarter, so it is not known what will be the final result on apple accounts
After hearing the news of the completion of the to be led, the stock market responded within hours with a fall of just 2.5%. In January results, the company announced it was expecting it revenues between $ 63,000 and $ 67,000 dollars. At its warning, Apple has not given it a new position but has already suppressed it.
In the 2019 session Apple was able to review the result because the quarter was already over. In that current one, we are probably in the middle It is not known what will happen this week. This avoids adjusting the direction of the results and when the situation deteriorates in the country. Which would challenge the management capacity of Cook's team and company.
Apple announced that its intention is to provide more details in April. If the situation was so bad, we would expect to review it even at the beginning of the month, with the remaining quarter closed.
