Apple Closes All Its Stores Outside China Over Coronavirus--Update
March 14 2020 - 1:26PM
Dow Jones News
By Andrew Dowell
Apple Inc. will close all its retail stores outside Greater
China, a dramatic example of how companies are clamping down on
business activity to slow the spread of the coronavirus to their
employees and customers.
Apple said the stores would be closed until March 27 in light of
the worsening spread of the virus, which according to figures from
Johns Hopkins University has killed 5,429 and infected 145,369.
Hourly workers will continue to be paid, and workers across the
company will be allowed to work remotely if their jobs permit it,
Apple Chief Executive Tim Cook said in a note on the company's
website.
The note said Apple stores inside Greater China, closed
previously, were all open Saturday, highlighting how the
coronavirus center of gravity has shifted to Europe and the U.S.
China reported 11 new infections and 13 new deaths for Friday.
Apple has around 500 retail stores world-wide, including
hundreds in the U.S., which along with the company's website and
direct sales force accounted for 31% of the company's $260 billion
in sales in the year ended September 2019.
The closures are part of a broad shutdown of business activity
in an effort to slow the spread of the new virus. President Trump
has broadly barred people arriving from Europe. Factories in
China's Hubei province, where the disease first appeared, remain
largely shut. Italy clamped down on commercial activity across the
country. The world's four biggest cruise lines are suspending U.S.
sailings for a month.
The tightening patchwork of border controls and office closings
are in some cases making business all but impossible, whether in
professional fields that require client contact or hourly
occupations that can't be done off-site.
Governments have sought to ease the impact with a range of
measures to ease liquidity for financial markets and shore up
economies with more spending. Apple said it has expanded its leave
policies to accommodate illness, caring for loved ones, mandatory
quarantines and child-care issues.
The tech giant reported that its revenue in the December quarter
was up 9% to $91.82 billion, driven by sales of devices and
services connected to the iPhone such as smartwatches and
streaming-TV subscriptions. Sales of iPhones, which account for
more than half of its revenue, rose 8% to $55.96 billion.
Outdoor gear retailer Patagonia also said it would shut its
stores, offices and operations for at least two weeks and will
reassess March 27. Employees will receive their regular pay, the
company said.
Write to Andrew Dowell at andrew.dowell@wsj.com
(END) Dow Jones Newswires
March 14, 2020 13:11 ET (17:11 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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