Apple’s stock price took a hit on Monday as concerns about the impact of the coronavirus outbreak in China continued to grow. The tech giant’s shares closed down 3.1% at $298.18, marking the biggest one-day percentage decline since October 2019.
The decline in Apple’s stock came as the number of confirmed cases of the virus in China surpassed 40,000, with the death toll rising to over 900. This has raised fears about the potential disruption to Apple’s supply chain and demand for its products in China, which is a key market for the company.
China is not only an important market for Apple, but it is also where the majority of the company’s iPhones are manufactured. The outbreak has led to factory closures and travel restrictions, which could impact Apple’s ability to produce and deliver iPhones to customers.
In addition to the manufacturing concerns, there are also worries about a decline in consumer demand for Apple products in China. With many people in the country under quarantine or choosing to stay indoors to avoid the virus, there may be a decrease in consumer spending on electronics and other non-essential items.
Analysts have expressed their concerns about the potential impact of the coronavirus on Apple’s financial performance. Many have revised their estimates for iPhone sales in China, predicting a decline in the first quarter of 2020.
Despite these concerns, some analysts remain optimistic about Apple’s long-term prospects. They believe that once the outbreak is contained and life returns to normal in China, there could be a rebound in consumer demand for Apple products.
Apple CEO Tim Cook recently stated that the company is closely monitoring the situation and working to mitigate any potential impact on its business. He also highlighted the resilience of Apple’s supply chain and the diversity of its manufacturing locations outside of China.
Investors will be closely watching how the situation unfolds and its impact on Apple’s financial performance in the coming months. As the coronavirus outbreak continues to evolve, it remains uncertain how long the disruption will last and what the ultimate impact will be on Apple and other global companies operating in China.