|Bid||317.48 x 800|
|Ask||317.43 x 1000|
|Day's Range||314.61 - 318.59|
|52 Week Range||169.49 - 327.85|
|Beta (5Y Monthly)||1.28|
|PE Ratio (TTM)||25.23|
|Earnings Date||Apr 27, 2020 - May 03, 2020|
|Forward Dividend & Yield||3.08 (0.95%)|
|Ex-Dividend Date||Feb 06, 2020|
|1y Target Est||334.45|
Yahoo Finance is maintaining a working list companies that have been affected by the outbreak, and are expected to feel the effects through the first half of the year.
(Bloomberg) -- Stocks slumped after Apple Inc.’s warning that sales will miss forecasts spooked investors who had hoped for a limited economic impact from the deadly coronavirus that originated in China. Treasuries rose and the dollar edged higher.The S&P 500 Index fell from a record high as the iPhone maker warned of production and demand disruptions due to the epidemic. Apple suppliers including Dialog Semiconductor Plc and AMS AG helped drag down European stocks. HSBC Plc tumbled the most since 2009 after it said it will slash jobs in a restructuring, while also flagging risks from the virus.Government bonds climbed, while the euro weakened after a German investor-confidence index plunged. Crude oil retreated toward $51 a barrel in New York and gold rallied.Investors are still trying to judge the corporate and economic impact from the coronavirus, even as the growth rate of cases in China’s Hubei province -- the epicenter of the disease -- continues to stabilize. It’s a turnaround from Monday, when sentiment was lifted by Chinese policy makers’ moves to support companies hit by the prolonged shutdown of large parts of the country. BHP Group said commodity prices will take a hit if the fallout extends beyond the end of next month.“The market has largely ignored what’s going on with the coronavirus in terms of what impact it might have, but I’m not sure that’s entirely appropriate,” said Jeff Mills, chief investment officer at Bryn Mawr Trust. “It’s likely to be temporary and the economy may bounce back, but this is different than what we saw with SARS. China is a much larger more entwined piece of the global economy.”Elsewhere, equity benchmarks in Tokyo, Seoul and Hong Kong saw declines of over 1%. The Australian dollar weakened after the Reserve Bank of Australia said it reviewed the case for a further rate cut at its last meeting, but didn’t go ahead. Emerging-market stocks and currencies fell.Here are some key events coming up:Earnings season rolls on, with results from Deere & Co. set for Friday.Minutes of the most recent Federal Reserve meeting are published on Wednesday.Indonesia is expected to cut interest rates on Thursday, following emerging-market peers that have already moved.Group of 20 finance ministers and central bank chiefs are scheduled to meet Feb. 22-23 in Riyadh, Saudi Arabia, and are expected to discuss efforts to support growth amid the coronavirus threat.These are the main moves in markets:StocksThe S&P 500 Index declined 0.5% as of 1:55 p.m. in New York.The Stoxx Europe 600 Index fell 0.4%.The MSCI Emerging Markets Index decreased 1.3%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.2%.The euro decreased 0.3% to $1.0801.The British pound slipped 0.1% to $1.2997.The Japanese yen was little changed at 109.85 per dollar.BondsThe yield on 10-year Treasuries declined four basis points to 1.54%.Germany’s 10-year yield fell one basis point to -0.41%.Britain’s 10-year yield decreased three basis points to 0.61%.CommoditiesWest Texas Intermediate crude sank 0.6% to $51.76 a barrel.Gold strengthened 1.3% to $1,601.35 an ounce.\--With assistance from Benjamin Dow, Andreea Papuc, Joanna Ossinger and Robert Brand.To contact the reporter on this story: Claire Ballentine in New York at email@example.comTo contact the editors responsible for this story: Christopher Anstey at firstname.lastname@example.org, Brendan Walsh, Yakob PeterseilFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Apple stock sank on Tuesday after the iPhone maker said the coronavirus outbreak in China would impact its March-quarter results more than expected. Apple's chip suppliers fell in sympathy.
(Bloomberg) -- Intel Corp. is in talks to sell a unit that makes chips for home internet access gear to MaxLinear Inc., according to people familiar with the matter.No final decision has been made and Intel could keep the connected home division, the people said, asking not to be named because the matter is private. It’s not clear how much the potential deal is worth.A representative for Santa Clara, California-based Intel declined to comment. MaxLinear didn’t respond to requests for comment.Intel, the world’s largest chipmaker, is looking at reducing its footprint in areas where it isn’t competitive, Chief Executive Officer Bob Swan has said. The company sold its smartphone modem business to Apple Inc. in a $1 billion deal last year. Swan has pointed to the money-losing memory business as an area where he might look for a partnership.MaxLinear, based in Carlsbad, California, provides broadband and networking semiconductors. Its shares fell 4.3% to $17.57 at 12:14 p.m. in New York trading Tuesday, giving the company a market value of about $1.3 billion.Intel’s connected home business makes chips that enable WiFi and manage data traffic for consumers. The chips provide wireless connections in home routers and gateways. Competitors include Broadcom Inc. and Qualcomm Inc.Throughout its history, Intel has created units that push new technologies as a way to further its central processor unit.The connected home initiative is part of an attempt to make sure Intel’s computing chips find their way into the increasing number of smart gadgets being used in households.To contact the reporters on this story: Liana Baker in New York at email@example.com;Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, ;Alistair Barr at firstname.lastname@example.org, Michael Hytha, Matthew MonksFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Apple warned on Monday it was unlikely to meet its March quarter sales forecast due to the coronavirus outbreak. Mass production of the model was expected to start by the end of February, but it could now be delayed until sometime in March, the Nikkei report https://s.nikkei.com/2V0IKyHed, citing sources. The company had asked suppliers to ready up to 15 million units of the cheaper model for the first half of 2020, the Nikkei reported late last month.
Apple trades lower after the company says the coronavirus will cause it to miss its prior revenue outlook. Here's what the charts say for the stock now.
(Bloomberg) -- Hubei, the Chinese province at epicenter of the coronavirus outbreak, said it plans to use recent purchases of medicines to look for unidentified patients. China’s commerce ministry said it would take steps to blunt the impact of the virus.Russia said it would bar Chinese citizens from entering the country starting Feb. 20.Earlier, China reported the lowest number of new cases since announcing a change in its method of detection last week. So far, 73,424 people have been infected and 1,873 have died around the world, the vast majority of them in Hubei.Apple Inc. said it would miss sales targets, driving down European stocks and U.S. futures. German investor sentiment plunged, South Korea warned of an economic emergency and Singapore set aside millions to counter the outbreak.Key DevelopmentsChina death toll 1,868; mainland cases rise to 72,436Hubei reports 1,807 new cases; 93 more deathsApple’s cut revives questions about China over-relianceExpert says outbreak could peak in some areas by end-Feb.China ramps up virus propaganda and stirs even more outrageClick VRUS on the terminal for news and data on the novel coronavirus and here for maps and charts. For analysis of the impact from Bloomberg Economics, click here.Russia Bans Chinese Citizens From Entry (1:05 p.m. NY)Russian Prime Minister Mikhail Mishustin signed an order temporarily banning Chinese citizens from entering Russia for tourism, personal reasons or work starting Thursday, Interfax reported, citing Deputy PM Tatyana Golikova’s office. The ban doesn’t apply to passengers continuing to a destination outside Russia.China Aims to Stabilize Trade, Promote Consumption (10:25 a.m. NY)China’s Commerce Ministry will take steps to help stabilize the nation’s foreign trade and prod consumption in a bid to reduce the impact of coronavirus outbreak on commercial activities, the ministry said in statement.Sanofi to Work on Coronavirus Vaccine (10 a.m. NY)French pharmaceutical company Sanofi jumped into the race to combat the fast-spreading coronavirus, betting that earlier work in pursuit of a SARS vaccine could accelerate its effort.Read the full story here.Hubei Will Search for People Who Bought Fever Drugs (7:24 a.m. NY)China’s Hubei province said it will use recent purchases of fever and cough medicines to sweep for unidentified coronavirus patients, a new step that leverages the government’s surveillance powers to try and stop the virus.The province has enacted a lockdown of tens of millions of people, opened new hospitals and isolation centers, mandated self-reported temperature checks, and conducted house-to-house searches for people showing symptoms. The measures have coincided with a drop in newly reported cases in Hubei, where the outbreak began and most infections and deaths have occurred.The government will investigate anyone who bought fever or cough medicines since Jan. 20, whether they were purchased from brick-and-mortar stores or online. It will also track down anyone who sought treatment for a fever since then. Anyone selling treatments for a cough or fever will have to check and register and report the patient’s identity, the provincial government said.China’s authorities have broad powers of surveillance, enabled by an almost totally mobile-based payment systems that are integrated into most aspects of everyday life. While they’ve helped control movement in the province and the city of Wuhan, creating a regional quarantine, citizens there have complained of harsh treatment and short supplies as the lockdown drags on.More Companies Warn on Virus Impact (7:24 a.m. NY)Walmart Inc.’s CFO said the virus could lower first-quarter earnings per share by a few cents. The retailer said it had closed “less than a handful” of stores in the country. Separately, Medtronic said it expected the outbreak to impact fourth-quarter results, but that this was hard to quantify.Earlier, Apple slumped after saying it wouldn’t be able to hit sales targets. The news drove down U.S. stock futures, as well as shares in European chipmakers and Asian suppliers.Xi Tells U.K.’s Johnson China Can Meet 2020 Goals (6:47 a.m. NY)China is confident in achieving economic development targets set for this year, President Xi Jinping told U.K. Prime Minister Boris Johnson in a phone call, according to China Central Television. China’s efforts to fight coronavirus are yielding significant results, Xi said.IHG CEO Calls Coronavirus ‘Short-Term Blip’ (6:28 a.m. NY)InterContinental Hotels Group shares reversed a decline after Chief Executive Officer Keith Barr said the outbreak was a “short-term blip” in the Chinese market.IHG opened six hotels in China in January and signed 11 hotels in February, Barr said on an earnings call. “Business is still moving ahead” and the “long-term fundamentals in China remain absolutely strong,” he said.Passengers Should Have Been Released Earlier: Netanyahu (6:10 a.m. NY)Passengers on the Diamond Princess cruise ship should have been dispersed as quickly as possible, Israeli Prime Minister Benjamin Netanyahu said. There were 15 Israeli citizens on board -- three have been infected and the remainder are scheduled to be flown back to Israel on Thursday.Japan said on Tuesday another 88 people aboard the quarantined ship had been infected, bringing the total number of cases to 542 people. Earlier, Britain became the latest country to look at evacuating its nationals from the Diamond Princess, following Australia and South Korea.Japan expects to remove all passengers from the cruise ship by Friday.Fredriksen’s Bulk-Shipping Firm Warns on Profits (6:09 a.m. NY)Golden Ocean Group Ltd., one of the world’s biggest dry-bulk shipping companies, said the coronavirus outbreak will hurt profits and slashed its dividend to a third to protect its balance sheet. The warning illustrates the toll from the virus on the world’s second-biggest economy and the global ripple effects, including on demand for transport of goods in and out of China.German Investor Confidence Plunges (6:08 p.m. HK)Investor sentiment in Europe’s largest economy dropped on concerns the outbreak will disrupt trade. ZEW’s index of expectations for the next six months fell below even the most pessimistic estimate in a Bloomberg survey. The poll suggests confidence is fading that Germany can stem a manufacturing recession that has lasted more than a year.“Economic development is rather fragile at the moment,” ZEW President Achim Wambach said in a statement. The outlook for export-intensive sectors has deteriorated “particularly sharply” as a result of the epidemic that originated in China, he said.Earlier on Tuesday, South Korea’s President Moon Jae-in called for “extraordinary” steps to minimize the virus’s impact and said it was an emergency for the country’s economy.Virus May Curb China Oil and Gas Use But Not Emissions (5:33 p.m. HK)A government stimulus package being planned to combat the economic impact of the viral outbreak will probably focus on increasing investment in infrastructure, which will likely boost usage of coal, BloombergNEF said in a report. The dirtiest fossil fuel continues to be the main source of power in China despite efforts in the past decade to clean up the sector by favoring new renewable generation.Brent futures fell 1.8% to trade below $57 a barrel in London.Apple Slumps on Sales Warning (5:12 p.m. HK)Apple shares fell 4.2% in pre-market trading after the technology giant said it doesn’t expect to meet revenue guidance for the March quarter, citing the impact of the coronavirus outbreak.The news also hit U.S. futures as well as technology stocks in Europe and Asia.Hong Kong Jobless Rate Was Rising Before Virus Hit (5:02 p.m. HK)The jobless rate rose in January for a fourth straight month, reaching its highest level since 2016 as Hong Kong’s businesses struggle from the political unrest and also from the disruption starting late in the month caused by the coronavirus outbreak.The city’s jobless rate rose to 3.4% for the November to January period, the same as the median forecast in a survey of economists. The string of increases was the longest since 2009, in the aftermath of the global financial crisis. The data does not reflect the full impact of shutdowns from the coronavirus outbreak.HK to Extend Virus Monitoring, Lab Tests (4:54 p.m. HK)Hong Kong health authorities will extend novel coronavirus surveillance to include testing outpatients and those at emergency wards, Under Secretary for Food and Health Chui Tak-yi said at a briefing.China Outbreak May Peak in Some Areas in Feb.: Expert (4:41 p.m. HK)Zhong Nanshan, a respiratory disease expert advising the Chinese government, expects the coronavirus outbreak to peak by mid to late February in southern China, Xinhua reported. The forecast is based on mathematical models and governments’ control measures.IMF Cuts Nigerian Growth Forecast (4:15 p.m. HK)The International Monetary Fund cut its estimate for Nigerian economic growth, as oil prices slump amid the coronavirus outbreak. The forecast for Africa’s top crude producer was lowered to 2% from 2.5%, the lender said in a statement on Monday.SAT Tests Scrapped For Chinese Students (3:43 p.m. HK)The College Board, which organizes the standardized Scholastic Assessment Test, or SAT, for admission to colleges in the U.S., canceled the March 14 test for all registered students traveling from China to other locations for the exam.The test will be administered in Hong Kong, Macau and Singapore, but not in mainland China.Singapore Budgets Millions to Counter Virus (3:09 p.m. HK)Singaporean authorities are setting aside an additional S$800 million ($575 million) in the city-state’s budget to support efforts to fight and contain the virus, Deputy Prime Minister Heng Swee Keat told Parliament.Earlier this month, Singapore Airlines and subsidiary SilkAir announced a temporary reduction in flight services across their global network, owing to weak demand as a result of the outbreak.Shanghai Schools to Remain Suspended (3 p.m. HK)Colleges and schools in China’s financial hub will remain suspended in March due to the outbreak and online teaching will be provided, the city’s government said. It said it would decide when to reopen campuses based on the development of the epidemic.Philippines to Allow Workers to Return to Hong Kong, Macau (3 p.m. HK)The Southeast Asian nation will allow its citizens employed in Hong Kong and Macau to return to their jobs, partially lifting a travel ban imposed weeks ago to prevent the virus’s spread.The government will exempt those working in the two cities from the ban “subject to certain formalities,” Foreign Affairs Undersecretary Brigido Dulay tweeted. It comes after the government lifted a days-old travel ban on Taiwan on Feb. 14.New Doctor Fatality (2:03 p.m. HK)State-run CCTV reported the death of neurosurgery expert Liu Zhiming, director of Wuhan Wuchang Hospital, underscoring the risks of the virus for medical workers on its front lines. It comes after the death earlier this month of Li Wenliang, a city doctor who was sanctioned for attempting to bring the virus to light early on -- and whose death sparked a rare outpouring of public anger in the country.More than 1,700 medical workers have been infected by the coronavirus, according to China’s National Health Commission, most of them in Wuhan. At least six have died.\--With assistance from Shinhye Kang, Dominic Lau, Drew Armstrong, Isabel Reynolds, Anand Krishnamoorthy, Natalie Lung, Peter Elstrom, Sam Kim, Derek Wallbank and Crystal Chui.To contact Bloomberg News staff for this story: Karen Leigh in Hong Kong at email@example.comTo contact the editors responsible for this story: Rachel Chang at firstname.lastname@example.org, ;Adveith Nair at email@example.com, ;Drew Armstrong at firstname.lastname@example.org, Karen Leigh, Mark SchoifetFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
U.S. stocks dropped on Tuesday after a surprise sales warning from tech bellwether Apple highlighted the impact of the coronavirus outbreak on global supply chains. The news also sent Apple suppliers, including Qualcomm Inc , Broadcom Inc, Qorvo Inc and Skyworks Solutions Inc, lower by 1.8% to 2.3%.
DOW UPDATE The Dow Jones Industrial Average is falling Tuesday afternoon with shares of Apple Inc. and Dow Inc. delivering the stiffest headwinds for the index. The Dow (DJIA) was most recently trading 197 points (0.
Production delays and lower demand caused by coronavirus are likely to affect Apple???s earnings results. Buy the likely dip in Apple???s shares with these ETFs.
The virus is resulting in shortages of iPhones, while reducing Chinese demand for Apple products. All three major U.S. stock indexes were lower.
(Bloomberg) -- Apple Inc.’s sales warning sent chipmakers tumbling on while spurring a surge in turnover for the industry’s exchange-traded funds.More than 54,000 shares worth about $14 million of the iShares PHLX Semiconductor ETF, or SOXX, traded before markets opened in New York -- the most in two years, according to data compiled by Bloomberg. The fund sank 1.5% at 12:53 p.m. Monday in New York, largely trailing the broader stock market. Trading in the VanEck Vectors Semiconductor ETF, or SMH, also surged.For the second time in as many years, Apple had to temper its sales outlook because of unexpected shifts in China, the country that’s served as the engine of its growth and success. First, there was a trade war with the U.S. and now there are concerns over a novel coronavirus that resulted in some manufacturing delays and retail-store closings in the Asian nation. While analysts argue that the impact from the outbreak would be temporary for both the tech giant and its suppliers, for now, the worries are sinking the industry’s shares.Tech More Volatile Than Broader Market Amid Apple Warning: Chart“In the near term, it’s going to be a volatile sector,” said Shawn Cruz, manager of trader strategy at TD Ameritrade. “If those factories are offline too long, you’re going to see some of these companies come out and cut revenue and earnings for the year. And the initial shock of that news coming out will cause a pretty big pullback in semiconductors.”That’s the latest sign that the coronavirus could have a larger impact on economic growth than first anticipated. The virus is the third-biggest tail risk after the U.S. presidential election and a bursting of the bond “bubble,” according to Bank of America Corp.’s fund-manager survey conducted this month. The poll released Tuesday showed global growth expectations for the next year has tumbled to a net 18% from 36% in January, driven by a drop in sentiment toward Chinese output.“That’s an area that could be ripe for investors to be nosing around at,” said Mark Haefele, chief investment officer for UBS Global Wealth Management. “The market is taking it out on some of the semiconductor stocks, partly because they are cyclical stocks and global growth matters a lot to cyclical stocks.”(Adds trading.)\--With assistance from Vildana Hajric and Elena Popina.To contact the reporter on this story: Claire Ballentine in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Rita Nazareth, Carolina WilsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The U.S. is considering restrictions that could limit the use of American chip-making equipment to produce semiconductors for China’s Huawei Technologies, according to a report in The Wall Street Journal.
The new coronavirus that was first identified late last year in Wuhan, China, is becoming a dominant theme in the earnings releases and conference calls of S&P 500 companies as investors press for answers on how it will impact their business.
During the California gold rush, many miners went bankrupt. Most investors recognize that the gold rush is on in 5G and artificial intelligence. The picks and shovels for the present-day gold rushes are semiconductors.
(Bloomberg) -- Oil slumped as investors grappled with renewed fears of the coronavirus crimping the global economy and fuel demand.Futures fell as much as 2.3% in New York on Tuesday. Apple Inc. warned that it would miss sales forecasts, citing production and demand disruptions due to the coronavirus epidemic. Meanwhile, the U.S. sanctioned a unit of Russia’s largest oil producer, Rosneft PJSC, for maintaining ties with Venezuela’s Nicolas Maduro and its state-run oil company.“The coronavirus is still front and center on everyone’s minds and Apple’s warning really caused the market to go down,” said Phil Flynn, senior market analyst at Price Futures Group. “These sanctions are happening at a time when Russia is trying to decide on where they fall on a production cut with OPEC+. This news may take some of the pressure off to act quickly.”Prices have lost about 15% since the beginning of the year on fears the outbreak will squeeze global demand for crude. Chinese refineries have continued to trim processing rates with at least two trading houses leasing crude-oil storage tanks in South Korea as a supply glut looms.While China reported the lowest number of new cases since announcing a change in its method of detection last week, the outbreak continues to weigh on commodities. ING cut its Brent and WTI oil forecasts, with oil demand set to remain weak due to the outbreak, analyst Warren Patterson wrote in a report.Citigroup Inc. said that markets had become overconfident in expecting a V-shaped rebound from the epidemic and oil prices are likely to remain weak during the first half of the year.West Texas Intermediate futures for March delivery lost 61 cents from Friday’s close to $51.44 a barrel on the New York Mercantile Exchange as of 11:18 a.m. There was no settlement Monday due to the Presidents’ Day holiday in the U.S.Brent for April settlement fell 70 cents to $56.97 on the ICE Futures Europe exchange.\--With assistance from Grant Smith, Saket Sundria and James Thornhill.To contact the reporter on this story: Jackie Davalos in New York at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, Catherine Traywick, Christine BuurmaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The major stock indexes were squarely lower midday Tuesday. Apple shares dove after issuing a sales warning due to the coronavirus outbreak.
Goldman Sachs strategists believe corporate earnings will clear a low bar this year, but there are downside risks and margins will come increasingly under pressure.
Money managers and analysts are looking for signs of when China’s economy can restart as companies such as Apple warn about the business impact of the coronavirus.
Apple shares are down on lowered guidance due to concerns about lower production due to the COVID-19 scare, while Walmart missed its first earnings estimate in two years.
Despite some hard evidence from the mighty Apple that the coronavirus is having some negative economic impact, the market is still not embracing the negative narrative. On top of that news, there is a poor earnings report from Walmart WMT but players are driving the market higher. The best way to deal with this action is to stay focused on price action.
DOW UPDATE The Dow Jones Industrial Average is falling Tuesday morning with shares of Apple Inc. and Dow Inc. seeing the biggest drops for the index. The Dow (DJIA) was most recently trading 165 points lower (-0.
(Bloomberg) -- For the second time in as many years, Apple Inc. has had to temper its sales outlook because of unexpected shifts in China, the country that’s served as the engine of its growth and success. First a trade war with the U.S. and now the outbreak of a novel coronavirus have called into question China’s role as a reliable market and supply chain partner for the world’s most valuable maker of consumer electronics.The coronavirus that’s stifled China’s meticulously orchestrated production and logistics has hit both Apple’s supply and demand -- factories are resuming work slower than expected, the company announced, and most of its 42 stores in the country lie dormant -- illustrating how heavily exposed its business is to disruptions in the world’s most populous country. A fall in sales within China is likely to be the most immediate impact this quarter, while widespread production bottlenecks there risk hurting global iPhone revenue in subsequent months.Amid its coronavirus troubles, Apple has been preparing to launch a new low-cost iPhone at around $400, Bloomberg News has reported. The model is still on track to launch in March, though the plans are still fluid, according to people familiar with the matter. Apple has also been preparing updated iPad Pro models with a new camera system for the first half of 2020 and the virus may yet impose delays or constraints on those plans.Apple Won’t Meet Quarterly Revenue Target Due to CoronavirusUpon joining the company in the late 1990s, Chief Executive Officer Tim Cook transformed Apple’s supply chain into the efficient juggernaut that’s been the longtime envy of the industry. Products are manufactured in China with the help of low-cost, but skilled, labor and shipped around the world in a matter of days. Relying on Taiwan’s Foxconn Technology Group to run on-the-ground operations and China’s abundant investment in transport to ensure logistics, Apple has become a trillion-dollar company largely by selling made-in-China iPhones, iPads, Macs and accessories.Responsible for millions of jobs in the country, Cook’s Apple has also garnered enough goodwill with the Chinese government to gain access to its market that is unmatched among U.S. tech heavyweights. Facebook Inc. and Alphabet Inc.’s Google are looking in from the outside, whereas Apple can sell all of its gadgets there. The Cupertino, California firm brings in more than $40 billion per year from Greater China, shy only of its takings from the U.S. and Europe. This strength is also the source of Apple’s vulnerability.On Monday, Apple cut its earnings guidance for the quarter ending Mar. 31, which was already wider than usual because of the unpredictability of the coronavirus fallout. U.S. stock index futures and shares in Apple suppliers from Japan to Hong Kong fell after the outlook warning kindled concerns about the damage the epidemic is causing global corporations and the Apple ecosystem. Last year, the company adjusted earnings because of a shortfall in iPhone demand in China, which it blamed in part on the ongoing trade war between Washington and Beijing.Production snarls at Apple’s main iPhone-making base of Zhengzhou may extend well into the June quarter and possibly beyond. Foxconn’s Hon Hai Precision Industry Co. only started seasonal recruitment on Monday, weeks behind schedule, and it’s been severely hindered by new policies intended to curb the spread of Covid-19 on campus. One recruiter, speaking on condition of anonymity, told Bloomberg News that the company was only hiring new workers from the local Zhengzhou area, tightening restrictions and eliminating the vast majority of available labor pool.Implementing a rolling quarantine of up to 14 days for returning workers from more distant provinces, Foxconn faces additional challenges in managing the movement of untold numbers of staff. In Shenzhen, as many as 10 workers are packed in each dorm room as they endure their assigned sequester period. The available beds are running short as a growing number of workers travel back, according to one person who helped arrange the program.‘Nightmare’ for Global Tech: Virus Fallout Is Just BeginningVirus contagion has shuttered plants across China for weeks longer than anticipated after the Lunar New Year break, and the nightmare scenario feared by Foxconn and its ilk is the infection spreading across factory floors, which could potentially freeze parts of the supply chain and trigger cascading shortages. Apple’s facilities have all reopened, said the U.S. firm, but evidence on the ground suggests they’re still far from fully operational.Existing iPhone inventories at retailers will soften the immediate blow of slower manufacturing, but analysts anticipate worldwide shortages will follow, extending the impact of the present disruption.“I expect we’re going to start seeing iPhone shortages outside of China, which plays into the guidance,” said Apple analyst Shannon Cross from Cross Research. “In theory, it shouldn’t be demand destructive. It should just mean there should be a larger backlog of demand when these issues are resolved.”The immediate reaction to Apple’s forecast cut has been a drag on Asian tech shares, especially those of suppliers to the company. But some impact on Apple was already widely anticipated.Tech Investors Jolted by Apple Pin Hopes on a Fast Turnaround“We’ve been getting nothing but headlines about the virus for weeks. Starbucks is closing its stores, Caterpillar is shutting its facilities. Company after company has been saying this,” Jim Paulsen, chief investment strategist at Leuthold Group, said by phone, expressing investor optimism for a fast turnaround. “We have been expecting bad sales headlines, this isn’t good, but it’s not surprising.” (Caterpillar closed its plants in China at the beginning of February at the direction of the Chinese government. It is re-opening them as the government allows; currently most are open.)Moving entirely out of China would be practically impossible for Apple in the short term, given the scale of its established network and the country’s incomparable ability to mobilize a workforce of millions. Similarly strong disruption threats to its supply chain arose in 2018 and 2019, largely spurred by trade war conflagrations, but Cook’s team has held steadfast in its commitment to the region and hasn’t shown any significant momentum toward a major move out.“Apple’s supply chain in China is so tight and large, it would be difficult to replicate outside the region,” Cross said. “I think you’ll continue to see small expansions into India, but the vast majority of production will remain in China.”Apple has indicated that its overall business is still strong, saying that it remained on track revenue-wise in regions outside of China for both products and services. The company is engaged in a long-term diversification shift that’s seen it pour billions of dollars into creating its own streaming content for Apple TV+ and building out subscription services like Apple Music and Apple Arcade. Its strongest step to reduce its China dependence to date has been this move to be less reliant on pure hardware sales for the bulk of its revenue.Addressing the wider smartphone industry in China, Strategy Analytics this month projected a significant hit to shipments in the first half of 2020, to be followed by a recovery and a slight increase in shipments in the closing months of the year. If Apple follows a similar trajectory, it could see iPhone demand shift into later quarters rather than vanishing entirely.“I think Apple remains in a very good position long-term,” Cross said. “I would assume there would be some pressure on the stock, but assuming this is a short term bump in the road, investors will look through it.”(Updates with comment from Caterpillar in 13th paragraph.)\--With assistance from Joe Deaux.To contact the reporters on this story: Mark Gurman in Los Angeles at email@example.com;Debby Wu in Taipei at firstname.lastname@example.org;Gao Yuan in Beijing at email@example.comTo contact the editors responsible for this story: Tom Giles at firstname.lastname@example.org, Vlad Savov, Edwin ChanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.