U.S. markets close in 2 hours 55 minutes

Apple Stores Begin Reopening In Coronavirus-Hit China

Shivdeep Dhaliwal

Apple Inc. (NASDAQ: AAPL) has started reopening more than half its stores in China.

What Happened

Apple has begun reopening its retail outlets in China as it tries to recoup sales that have come under pressure due to the Covid-19 epidemic. 

Bloomberg reported that beginning Feb 24, 29 out of 42 stores in China would be reopening. These locations will operate shortened hours and some stores will be open for less than 8 hours. Usually, Apple stores are open 12-hours daily.

Apple sales in China could drop by 1 million if the virus epidemic persists until late February. 

Why It Matters

Apple stocks have come under increasing pressure as the spread of Covid-19 intensifies around the world. 

Analysts are worried about the waning demand for Apple products. The revenue impact of Covid-19 on the company is estimated to be $4 billion according to Apple. 

Experts expect infections to peak by late March while the company opens its stores gradually in the interim. 

Price Action 

Apple shares traded 0.98% higher at $301.10 in the after-hours session on Monday. The shares had closed the regular session 4.75% lower at $298.18.


Photo by Laurenz Heymann on Unsplash

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.