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Apple monitoring the Coronavirus Outbreak in Italy, South Korea

Apple said last week that it would not meet its targets for the quarter ending in March because of Coronavirus Outbreak

Apple monitoring closely how the coronavirus Outbreak is happening in South Korea and Italy, where the company has suppliers, said chief executive Tim Cook in an interview. Apple lists major Korean Smartphone maker LG and Samsung among its suppliers. According to its new supplier list, it also sources chips from Italian owned franco-Italian chipmaker STMicroelectronics factory.

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Cook informed Fox Business Networks that 80% of Apple’s stores in China had re-opened. He also said that Chinese iPhone factories had rebooted and were in “phase three ramp mode.” He Further Sad “It will take some time, but by in large I think this is a temporary condition, not a long-term kind of thing,”

When asked whether Apple should move production out of China to countries like Vietnam or Cambodia, Cook said that the supply chain of the company was global and that, in addition to prices, the company considered market pace and engineering skills. He also said supply chain managers from Apple were looking into how robust the company’s supply chains against coronavirus outbreak.

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“And so, the question for us after we get on the other side will be, was the resilience there or not and do we need to make some changes,” Cook also said. “My perspective sitting here today is that if there are changes, you’re talking about adjusting some knobs, not some fundamental wholesale change.”

Apple said last week that it would not meet its targets for the quarter ending in March and that it would face shortages in the supply chain. Cook said he did not know if the coronavirus Outbreak would impact the quarter that ends in June.

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