By
Godfrey Benjamin
April 23rd, 2024
Apple (AAPL) stock price dropped after it was announced that retail shops outside China will be closed due to COVID-19 fears.
Apple Inc (NASDAQ: AAPL) stock price fell by about 12% on Monday. Sources say that the technology giant’s shares dropped as well. Stocks kept sliding even after the pre-market drop. This indicates that the Cupertino California technology company has its plate full. But today Apple stock is in green. As at the time of filing this report, Apple (AAPL) stock price was $252.76 (4.36%).
Apple (AAPL) Stock Face Many Different Problems Today
Prices have been topsy-turvy. Apple stock has been facing quite a bit in the midst of a massive drop in global demand for just about everything, today it still has challenges.
The company had announced that it would shut down some of its retail stores on Friday. Apple had indicated that it would shut down all retail stores outside China. This is to assist in the halting of the COVID-19 pandemic. This comes as the technology giant is battling several battles on different fronts. These battles all stem from the emergence of the coronavirus.
The Chinese have served in many aspects of Apple’s supply chain when it comes to manufacturing. China was the epicenter of the COVID-19 outbreak (the originating country). The country seems to have stabilized as the numbers of newly infected and deaths are reducing. As such, business in China will pick up in the next few weeks.
The reverse is the case, however. Europe is reportedly considering a total border shutdown. The United Kingdom is tilting towards a total shutdown as well. Border restrictions in different Countries are already in play to try to contain the outbreak.
Apple’s strategy to work things out from China may not produce the required effect. At least not according to many analysts. They believe that the Chinese population may experience some apathy when it comes to sales. This alleged negative sentiment is attributed to how everyone else is feeling at the moment. The world is reeling in chaos at the moment. In many climes, shortages of necessities are the norm. The positive sentiment required by Apple (AAPL) might be awhile for now.
Chinese Market May Be Apple’s Savior
The Chinese, however, may bounce back faster than imagined. Sources say that all temporary hospitals in Wuhan have been closed. Wuhan is ground zero for COVID-19. If the right strategies are applied, then maybe we will have a short down cycle for world markets. Apple (AAPL) according to many has a fighting chance to follow the business recovery cycle and be at the top of their game again.
The side-effects of the fall-out of COVID-19. For example, there is an exponential increase in online meetings. This brings an all-new experience to the table for many. Apple’s WWDC 2020 conference is one such example. The technology giant had announced that the conference this time will be online.
Originally, the 5000-strong conference is one of the most-watched and talked about events. The COVID-19 outbreak has given everyone the chance to take remote events to another level.
As with all things Apple, they could just figure out the next big product from this current situation. Keeping in line with tradition, this might just be the way to go.