Apple CEO Tim Cook has sent a memo to all Apple employees, addressing the impact of the Coronavirus spread, including sharing concern for all Apple employees, customers, partners and suppliers in China. This follows a note to investors which suggested that Apple will not be able to meet the revenue estimates for Q2 2020. Apple had in the last earnings call estimated between $63 billion to $67 billion in revenue in the quarter, owing to strong iPhone and wearable sales and the consistent growth that Services continue to register. However, with close to no production happening in China, the estimates will have to be realigned, according to the memo published by Bloomberg.
According to last count, the death toll from the Coronavirus has touched 1,873 in mainland China with as many as 72,436 officially confirmed cases, according to the data released by the Ministry of Health. Globally, there are 73,334 cases confirmed with Singapore, Japan and Hong Kong worst hit after China.
In the memo to employees, Tim Cook says the priority remains the health and safety of the employees, partners and everyone linked with the company’s supply chain. He believes this disruption is temporary and Apple remains strong fundamentally. Here is the full memo written by Tim Cook, as obtained by Bloomberg.
The response to COVID-19 has touched the lives of so many in the Apple family, and I want to thank everyone for their dedication, empathy, understanding, and care. Today, we more than doubled our donation to support the historic and global health response.
Our paramount concern is with the people who make up Apple’s community of employees, partners, customers, and suppliers in China. I also want to recognize the many people across our teams who have been working around the clock to manage Apple’s global COVID-19 response with diligence and thoughtfulness.
Corporate offices and contact centers have reopened across China, and our stores are starting to reopen, but we are experiencing a slower return to normal conditions than we had anticipated. This afternoon, I shared this update with our community of shareholders and investors to note that we do not expect to meet the revenue guidance we provided for the March quarter. Outside of China, customer demand across our product and service categories has been strong to date and in line with our expectations. Apple is fundamentally strong, and this disruption to our business is only temporary.
Our first priority – now and always – is the health and safety of our employees, supply chain partners, customers, and the communities in which we operate. Our profound gratitude is with those on the front lines of confronting this public health emergency.