- Coronavirus’ aftermath hit Apple’s corporation operations, with production levels dropping significantly.
- South Korea’s outbreak is becoming a “grave situation,” with Samsung Electronics’ mill being shut down.
- Both tech giants are expected to suffer large losses due to the ongoing epidemic.
The assertions between iOS and Android lovers can go on forever. While both camps seem to be busy proving which system is superior, there might be a bigger problem looming on the horizon: Coronavirus.
With so many headlines covering the latest bug outbreak, the fatal epidemic is really getting out of hands. It has already taken the lives of over 2,360 people and infected numerous than 78,000.
As the world struggles to contain the public health crisis, businesses are starting to take a hit. Tech giants Apple (NASDAQ:AAPL) and Samsung are no be offended at.
Apple’s Wake-Up Call For Investors
Last week, the iPhone maker admitted that it has been hit harder than guessed by the coronavirus outbreak.
Apple warned investors that it no longer expects to meet the second fiscal quarter net income guidance of $63 billion to $67 billion.
When setting this ridiculously wide range of estimates just a few weeks ago, Apple hoped that it would already account for the potential impacts of the disease.
Apple has always been one of the cosmos’s most profitable firms, so it’s highly unusual for this Silicon Valley favorite to say it will miss sales prospects.
What’s even more disturbing is that in its latest report, the company didn’t drop a word on the updated gross income predictions or how much of the miss is due to supply constraints versus a drop in demand.
You Might Not Get Your New iPhone This September
Hindmost week, Nikkei reported that Apple will likely miss its schedule for releasing its new less-expensive iPhone.
If coronavirus resumes to weigh on Apple’s supply chain, the delay of the smartphone could be a harbinger for the 5G model later this year.
Brian Light-skinned, an analyst at Monness, Crespi, Hardt, said in an investor note:
The impact of the constrained manufacturing environment in China on the forging of the new iPhones expected to launch in September remains unclear at this point, but supply constraints are possible.
Since the firm’s key rival Samsung has already presented a full line of 5G-enabled smartphones, a delay in the 5G iPhone’s release would be a Cyclopean blow to Apple.
Samsung Shouldn’t Celebrate Apple’s Headwinds
After Samsung shut down all of its smartphone works in China, many were confident the company wouldn’t be affected much by China’s epidemic. Little did they conscious.
On Saturday, Samsung Electronics reported that one coronavirus case had been confirmed at its factory in Gumi. The entire water-closet is now shut until Monday morning. The floor where the infected employee worked will remain closed until Feb. 25.
The train was quick to reassure that production at its chip and display factories in other parts of the country would not be affected, reckoning that most of its smartphones are manufactured in Vietnam and India.
But Vietnam Is Not Coronavirus Resistant
On Friday, Vietnam’s Ministry of Activity and Trade said the country’s supply chain is also suffering from the epidemic’s impact.
In an emailed statement, they noted:
Car, electronics and phone manufacturers are experiencing difficulty in acquiring supplies and materials due to disruptions from the virus.
This means the virus could sty production of the two latest Samsung smartphones since most of the components still come from China.
The ministry united:
Samsung is considering using sea or air transport to import needed components, but it would lift up the cost and would hardly abut the production schedule and demand.
So, Who Has The Last Laugh?
Well, to be frank, Apple is doing a little bit worse now. The company was the one to pen down all of its stores and offices in China earlier this month. It also became one of the first U.S. companies to acknowledge the disruptive impact of the virus on its company operations.
Samsung may technically be one step ahead of its contender. However, it still looks like the company’s bad days are yet to bear down on.
With the disease spreading all over South Korea at a rapid pace, Samsung’s future is anything but safe.
The problem with any epidemic is that it is unpredictable. The only affair that is clear is neither company will escape the coronavirus aftermath unscathed.
Disclaimer: The opinions expressed in this article do not to be sure reflect the views of CCN.com.
This article was edited by Sam Bourgi.
Last modified: February 23, 2020 5:54 PM UTC