Financial Times reports Apple’s first drop in revenue in three years due to China
The net profit of the US corporation Apple in the fourth quarter of this year will decrease by more than 8 percent, for the first time in three years, the company’s revenues will not grow. It became known Financial Times.
So, according to the analytical company Visible Alpha, now 90 percent of iPhone devices are assembled in China, this country accounts for a fifth of the corporation’s revenue. At the same time, due to restrictions in connection with the coronavirus and a sharp surge in the incidence after their cancellation, the company faced a shortage of 5 to 15 million iPhones.
Difficulties also appeared with the implementation of already manufactured devices. For example, one Apple store in Beijing had to cut business hours because all of its employees fell ill. There was also a shortage of workers on the production lines.
Alan Day, head of the British supply chain consultancy State of Flux, which is working with the UN on corporate standards for responding to the spread of COVID, noted that the next two to six months will be key in the issue of supply chain stability from Apple against the backdrop of the epidemiological situation in China.
Earlier, Bloomberg said China’s spike in COVID-19 cases has infected hundreds of millions of people and heightened analyst and business fears that the country will once again face the threat of an economic downturn. The largest increase in the number of infections is observed in Beijing, Shanghai, Guangzhou and Chongqing.
#drop #Apples #revenue #years #due #China