Foxconn Revenue Fall Amid Coronavirus Outbreak
Apple manufacturing partner and supplier, Foxconn registered the worst drop in monthly revenue for the last seven years. The company announced in a stock exchange filing that its revenue fell to 7.28 billion dollars in February. This was the worst result since March 2013 and also the third straight month of decline. Apple stock fell 3.2% one day after the announcement.
Because of its production in China, Foxconn has been struggling amid coronavirus outbreak. Even though they said that its revenue would recover after its production comes back to normal in China, it is hard to predict when this will happen. By now, their stock price already dropped 10% this year. Since Apple is its top client, it is possible to see this impact also hitting Apple stock price.
Apple Asks Silicon Valley Staff to Work Remotely
After Alphabet and Microsoft, Apple announced that is encouraging its employees in Silicon Valley to work from home. The decision came as an “additional precaution” against the Coronavirus outbreak. Also, the company is offering a home office for its workers in Seattle.
This decision is not the only one taken by the iPhone maker. Apple is also limiting “Today At Apple” classes in the Seattle area since it is the most affected region in the United States. Additionally, travels to China, South Korea, and Italy are restricted for its employees.
At the moment, Apple retail stores in the San Francisco Bay Area remain open. The company is yet to comment on its future plans.
WWDC Event Could be Canceled
The County of Santa Clara Public Health Department wrote a recommendation to all large community events to be postponed or canceled. This, of course, includes the Apple Worldwide Developers Conference. The annual event already saw big companies like Google and Facebook not going and this could force Apple to take the decision to cancel WWDC.
Six more cases of COVID-19 were confirmed in Santa Clara County, raising to 20 the number of people tested positive for Coronavirus.
Coronavirus Uncertainty Leads to AAPL Price Fall
After surpassing the $325 mark by mid-February, Apple stock (AAPL) saw a big hit and it is not close to recovering that value. Since then, the coronavirus outbreak reached all continents in the world, leading to a huge uncertainty among investors.
That feeling caused a huge drop in different stocks all over the world and Apple is included. After dropping to $273, AAPL is oscillating and is now being negotiated under $290. Since there is a huge question mark about the impact that coronavirus can cause in the Apple supply chain, there is no clear trend for its stock at the moment.