Apple: shares down after closing all stores outside China
(CercleFinance.com) - The Apple stock is down over 10% on Monday after the US tech giant said that it will be closing all of its retail stores outside mainland China until 27 March due to the coronavirus pandemic.
In decreasing order, the company operates 272 stores in the US, 38 in the UK, 29 in Canada, 22 in Australia and 20 in France.
In a statement, CEO Tim Cook said that the company has learnt a number of lessons from the coronavirus outbreak in China, where all of its stores have now reopened after implementing ways to minimize risk of virus transmission by reducing density and maximising distance between customers.
However, analysts pointed out that the move will clearly have a further negative impact on the March quarter and potentially the June quarter, depending on how long stores remain closed.
Analysts at Credit Suisse estimate two weeks of retail sales ex-Greater China equate to 1 billion dollars in lost revenue or about 2% of March quarter sales for Apple.
"We maintain our belief that Apple's long-term positive fundamental story will recover quickly as the COVID-19 pandemic lifts", Wells Fargo commented.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
In decreasing order, the company operates 272 stores in the US, 38 in the UK, 29 in Canada, 22 in Australia and 20 in France.
In a statement, CEO Tim Cook said that the company has learnt a number of lessons from the coronavirus outbreak in China, where all of its stores have now reopened after implementing ways to minimize risk of virus transmission by reducing density and maximising distance between customers.
However, analysts pointed out that the move will clearly have a further negative impact on the March quarter and potentially the June quarter, depending on how long stores remain closed.
Analysts at Credit Suisse estimate two weeks of retail sales ex-Greater China equate to 1 billion dollars in lost revenue or about 2% of March quarter sales for Apple.
"We maintain our belief that Apple's long-term positive fundamental story will recover quickly as the COVID-19 pandemic lifts", Wells Fargo commented.
Copyright (c) 2020 CercleFinance.com. All rights reserved.