Apple is strong enough withstand the coronavirus outbreak, despite a downturn in its share price, according to CEO, Tim Cook. He reflected on coronavirus’ threat to Apple’s operations in a recent interview with Fox.
“It will take some time, but by and large I think [the coronavirus’ effect on industry] is a temporary condition, not a long-term kind of thing,” Cook said. “You know, Apple is fundamentally strong and that’s how I see it.”
“Our products are built everywhere. They are truly global products and so you have several parts that are made in the US that serve the world… So, what will happen to the supply chain as we look back on this? I wouldn’t want to say at this point.”
Apple’s share price has fallen from a high of 327.20 on February 12, to just 279.41 at time of writing (Monday, March 2). That’s a pretty hefty hit and the cause is, of course, the coronavirus. Having caused the shut-down of Apple stores in China as well as impacting suppliers, (it closed the Foxconn factory, among other issues,) the virus has severely dented pretty much every part of the technology industry.
That value hit is just part of doing business in the real world, as Cook sees it. He said: “There will always be unpredictable things that will come up but we’ve worked through earthquakes, fires, tornadoes, floods, tsunamis, SARS… and the operational team is good at working through these. The question for us, after we get to the other side [of coronavirus] will be ‘was the resilience there, [in the supply chain] or not?’ and ‘do we need to make some changes?’ My perspective, sitting here today is that – if there are changes – we’re talking about adjusting some knobs, not wholesale change.”
When his interviewer pushed the point about Apple’s plummeting share price, Cook didn’t seem worried, arguing that a long term perspective was all that was needed to allay fears.
He said: “I don’t really focus on the short-term fluctuations in the market. For me, and the way we run the company, we work towards the long term and I see no long-term difference… The market takes time to recognise that… The future looks very bright.”