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Apple has been Kung-Flued in the Middle Kingdom

by on03 February 2020


Closes Chinese stores over the coronavirus 

Fruity cargo-cult Apple is to shut all of its official stores and corporate offices in mainland China until 9 February as fears over the coronavirus outbreak mounted and the death toll more than doubled to over 250 from a week ago.

Apple said the move was “out of an abundance of caution and based on the latest advice from leading health experts".

Apple will shut its corporate offices, stores, and contact centres in mainland China.

Earlier this week, Apple closed three stores in China due to concerns about the spread of the virus.

It’s joining a handful of overseas retailers, including Starbucks and McDonald’s to temporarily shut storefronts as a precautionary measure.

Many other companies, meanwhile, have called for employees in China to work from home and cease non-essential business travel in the first week of February.

Normally, businesses in China would be preparing to return to normal operations following the end of the week-long Lunar New Year Holiday.

But the news is bad for Apple which is heavily reliant on China for smartphone sales as well as for its supply chain and manufacturing. Many factories in Hubei province, including plants run by AB InBev and General Motors Co, have temporarily suspended production due to the virus.

In a recent earnings call, Apple CEO Tim Cook said the company was working out mitigation plans to deal with possible production loss from its suppliers in Wuhan. The city where the virus outbreak originated is home to several Apple suppliers.

 

Last modified on 03 February 2020
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