How did coronavirus affect Apple stock?

coronavirus affect Apple

The rapid spread of Chinese pneumonia has had an extremely negative impact on the securities market. Affected by coronavirus, including Apple Inc. stockholders

How it all began …

Apple producer stock prices began to decline around mid-February. For example, in preliminary trading on February 18, 2020, the drop in quotations amounted to more than 3.5%. A few days before, the rate dropped by more than 4%.

The January statement by Apple representatives that the corporation’s revenue by March 30, 2020 (the end of the second financial quarter) could not be the numbers announced earlier due to the outbreak of a deadly disease from China.

We remind you that at the end of the first month of this year, according to forecasts by Apple analysts, revenue for the quarter was to be about $ 65 billion. It was assumed that the production of “apple” devices in China will fully resume as early as 10.02.2020. China is the third largest retail market for iPhone sales (the first and second are America and Europe, respectively). At the same time, until recently, demand for Apple products remained at the expected high level.

Current state of affairs

The stock market of technology corporations suffered the most severe losses during the sale period. Investors are worried about how new-type pneumonia will affect both consumer demand and production chains.

A little less than a week ago, the American president announced that the government controls the situation in the United States. However, the market decline that continued the next day (March 12, 2020) showed that Trump was not convincing enough. The stock price of Apple that day fell by more than 9%. In the future, the giant managed to win back the fall only partially.

The effect of coronavirus. Apple stock price chart 2020.
The effect of coronavirus. Apple stock price chart 2020.

With the depreciation of securities by more than 20% compared with the maximum figures for February 2020, we see that Apple’s market value has fallen to approximately 1.1 trillion “American rubles”. While a couple of weeks ago, the organization was valued at 1.4 trillion US dollars.

For reference: coronavirus also had a critical impact on the stock situation of yet another technology industry leader – Amazon.com Inc. At the end of last month, the market value of the corporation fell to less than $ 1 trillion.

What do Apple investors promise?

Representatives of Apple Corporation published a document notifying shareholders and other interested parties that Chinese pneumonia affected the business much more than could be expected. After the Christmas holidays, the production cycle could not fully resume. Additionally, there is a decrease in consumer demand for Apple products.

The introduction of quarantine in China, which has now come to an end, has significantly affected the production of American devices. At the same time, accessories for iPhones are still delivered with delays.

Apple store closed
Apple store closed

Apple outlets located in China, the United States and Europe (countries that suffer from a fatal disease more than others) either reduced their working hours or closed. Given the fact that the other day coronavirus was declared a pandemic by WHO, there is practically no hope that Apple will be able to recover before the epidemic ends.