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Coronavirus and Apple's iPhone supply chain


Simon Mugo

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Well, Apple recently issued a wide earnings range for Q1 2020 with the company singling out the coronavirus outbreak as a major factor behind the guidance. Foxconn, a major Apple supplier, asked some of its Chinese employees not to return to work at a manufacturing facility due to the spreading coronavirus outbreak.

The Chinese workers were on holiday starting 25th January as they celebrated the Lunar New Year holiday, which usually lasts for a week, but had been extended to 10th February. It is not clear when the facility shall be reopened and this could have a significant impact on Apple's supply chain given that Foxconn supplies many iPhone parts.

Therefore, it is highly likely that Apple's earnings could lean towards the lower-end of its wide range depending on how long it takes to contain the coronavirus outbreak.

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