Apple Closely Watching Coronavirus Outbreak in South Korea, Italy: CEO

Apple is carefully watching how the coronavirus outbreak is unfolding in South Korea and Italy, the place the corporate has suppliers, Chief Executive Officer Tim Cook mentioned in an interview. Apple counts main Korean show makers Samsung Electronics and LG Electronics; amongst its suppliers. It additionally sources chips from a manufacturing facility in Italy run by Franco-Italian chipmaker STMicroelectronics, in keeping with its most up-to-date provider checklist.

Cook informed Fox Business Networks that Apple had re-opened 80 p.c of its shops in China. He additionally mentioned that iPhone factories in China had restarted and have been in “phase three of the ramp mode.”

“It will take some time, but by in large I think this is a temporary condition, not a long-term kind of thing,” Cook mentioned.

Asked if Apple would transfer manufacturing out of China to nations comparable to Vietnam or Cambodia, Cook mentioned the corporate’s provide chain was international and that the corporate thought of velocity to markets and engineering abilities in addition to value. He additionally mentioned Apple’s provide chain managers have been analyzing how resilient to the coronavirus shock the corporate’s provide chains have been.

“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,” he mentioned. “My perspective sitting here today is that if there are changes, you’re talking about adjusting some knobs, not some sort of wholesale fundamental change.”

Apple final week mentioned it will not meet its steering for the quarter ending in March and that it will expertise provide chain shortages. Cook mentioned he didn’t know whether or not the coronavirus would have an effect on the quarter ending in June.

On Wednesday at Apple’s annual shareholder assembly, Cook mentioned Apple would open its first retail retailer in India.

Cook was interviewed in Alabama, the place he had traveled to announce a program to show laptop coding in colleges.

© Thomson Reuters 2020

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