Apple Takes Leadership Role in COVID-19 Response

Apple Takes Leadership Role in COVID-19 Response

Apple recently announced further steps in response to the spread of COVID-19. Bottom line: we applaud the leadership role Apple has assumed in taking these steps despite the near-term negative impact on revenue. Our takeaways:

The impact of retail closings:

  • Apple is closing all its retail stores globally until March 27.
  • We estimate that Apple retail accounts for 8% of revenue.
  • Closing all stores for two weeks outside of China adds about 1-2% revenue headwind to the March quarter.
  • Some of the sales that would have happened in-store will shift online, which will somewhat offset the negative impact.

Office employee work options:

  • Similar to many companies, Apple is moving to “flexible work arrangements worldwide outside of Greater China,” allowing employees to work remotely if their job allows.

Relief for Apple Card holders:

  • Allowing Apple Card holders to skip their March payment without penalty.

Giving:

  • Apple is matching employee donations two-to-one related to the COVID-19 response.
  • Apple is doing it right, winning the long game in the hearts and minds of consumers by treating them with compassion.

Disclaimer

Apple