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Apple China reopens stores slowly

By Sarah ChenChina
1 min read
Apple Iconsiam opens in Bangkok crowd in store 11112018 big.jpg.large
Apple Iconsiam opens in Bangkok crowd in store 11112018 big.jpg.large
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Apple China has reopened 10 more stores in China, as the business begins to return to normal despite the ongoing coronavirus outbreak.

The 10 reopened outlets, which are located in Shanghai, Chengdu, Dalian, Guangzhou and Qingdao Vientiane City, will operate with limited business hours, according to stores’ websites.

It is not yet clear whether or not the 10 Apple China stores will apply the same measures to prevent coronavirus transmission as five stores in Beijing which reopened last week with protection, including temperature checks of customers upon entry

Meanwhile, Apple warned of global iPhone supply shortages earlier this week, and said it would be unlikely to meet quarterly revenue targets while its Chinese factories remained shut.

“Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” the company said in a statement. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter.”

Although the iPhone manufacturing partners outside Hubei have resumed production, “they are ramping up more slowly than we had anticipated”.

Meanwhile, archrival – Samsung – has launched its latest smartphone in Vietnam, saying its factories in the country are running at full capacity during the coronavirus epidemic.

Nguyen Tri Thong, corporate marketing director at local smartphone unit Samsung Vina Electronics, told the Nikkei Asian Review that Samsung’s new products have been available for delivery as the company has a clear production schedule.

“The outbreak of the coronavirus did create challenges to many businesses globally. However, we have been mobilizing our backup plans in order to maintain our position,” Thong said. “We don’t see any serious issues in our supply chain at the moment,” he said without giving further details.

Questions & Answers

Q.

What measures are being taken at the newly reopened Apple stores in China?

A.

The 10 newly reopened Apple stores will operate with limited business hours. It is not yet clear if they will implement the same anti-transmission measures as the five Beijing stores, which include temperature checks for customers upon entry.

Q.

What impact has the situation had on Apple's financial outlook for the current quarter?

A.

Apple has warned of global iPhone supply shortages and stated it is unlikely to meet its revenue guidance for the March quarter. The company is experiencing a slower return to normal conditions than anticipated.

Q.

How does Samsung's production capacity compare to Apple's during this period?

A.

Samsung's factories in Vietnam are reportedly running at full capacity, allowing the company to launch its latest smartphone and maintain a clear production schedule. They do not report serious supply chain issues.

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