In a move that “will send waves across Wall Street”, tech giant Apple has warned that first-quarter revenues will miss already-reduced forecasts, due to disruption in China caused by the coronavirus, reports the Financial Times. Store closures have hit sales, while smartphone production has fallen as the virus has “made it hard for workers at all levels to get back to work”.
The “double whammy” of supply problems and reduced sales may hit Apple harder than most; Chinese customers account “for nearly a fifth of revenue” and “essentially all” iPhones are assembled there by partner Foxconn, note Pete Sweeney and Robert Cyran on Breakingviews.
However, Apple is by no means the only company affected: “everything from vitamins” to cars depends on materials from China, which remains a “dominant” producer of intermediate components. Indeed, even though gaming giant Nintendo has already moved some production to Vietnam, it still anticipates shortages of its latest Switch games console.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Moving out of China entirely would be “practically impossible” for Apple in the short term, given the scale of its existing network and China’s “incomparable ability” to mobilise a workforce of millions, says Bloomberg. However, in the medium term Apple hopes to reduce its dependence on China by being “less reliant” on pure hardware sales for the bulk of its revenue, which is why it is currently pouring “billions of dollars” into creating its own streaming content for Apple TV+ and building subscription services such as Apple Music and Apple Arcade.
-
Bitcoin price one of the most-asked questions on Alexa - here's how to buy the cryptocurrencyAccording to figures from Amazon, which cover September 2023 to November 2024, pop star Taylor Swift and Bitcoin were named among the most popular Alexa queries of 2024
-
Investing for children this Christmas – five ideasIt might not come with a shiny ribbon, but an investment fund could be the gift that keeps on giving. We share five ideas if you are investing for children this Christmas.
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
Best investing appsLooking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go? We round up the best investing apps
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
