Tim Cook issues memo to staff regarding coronavirus outbreak

Posted:
in AAPL Investors
Tim Cook has released a memo to Apple staff, discussing the impacts of the coronavirus has made Apple's return to normal conditions somewhat slower than anticipated.

Tim Cook issues memo to staff regarding coronavirus
Image credit: iphonedigital


The memo, sent to staff by Tim Cook, comes hours after Apple released a public statement announcing that it will miss quarterly guidance and iPhone sales estimates because of of the outbreak.

Apple is revising its quarterly guidance downward not just a as a result of lowered sales in China because of the coronavirus, but also because of production problems in the country that are just now starting to be overcome.

The memo clarifies that Apple is working on returning to normal operations, but that the health and safety of Apple partners, employees, customers, and communities in which the company operates is the firstmost priority.

Bloomberg obtained a copy of the memo, which reads:
Team,

The response to COVID-19 has touched the lives of so many in the Apple family, and I want to thank everyone for their dedication, empathy, understanding, and care. Today, we more than doubled our donation to support the historic and global health response.

Our paramount concern is with the people who make up Apple's community of employees, partners, customers, and suppliers in China. I also want to recognize the many people across our teams who have been working around the clock to manage Apple's global COVID-19 response with diligence and thoughtfulness.

Corporate offices and contact centers have reopened across China, and our stores are starting to reopen, but we are experiencing a slower return to normal conditions than we had anticipated. This afternoon, I shared this update with our community of shareholders and investors to note that we do not expect to meet the revenue guidance we provided for the March quarter. Outside of China, customer demand across our product and service categories has been strong to date and in line with our expectations. Apple is fundamentally strong, and this disruption to our business is only temporary.

Our first priority - now and always - is the health and safety of our employees, supply chain partners, customers, and the communities in which we operate. Our profound gratitude is with those on the front lines of confronting this public health emergency.

Tim
The coronavirus is a major global issue, with many companies having to mitigate the effects of the spread for themselves as well as meeting the demands of government agencies, while simultaneously having to plan and implement alternative ways to manufacture goods. As one such major entity, Apple is keenly aware of the potential damage the virus can cause to its bottom line.
lkrupplolliver

Comments

  • Reply 1 of 10
    JinTechJinTech Posts: 1,012member
    Well said Tim, well said. I would have expected nothing less.
    tmayleavingthebiggdewmeArszyRayz2016spice-boynetmagelkrupplolliver
  • Reply 2 of 10
    ivanhivanh Posts: 597member
    Is there a risk management committee in the board? Are CCP, dictatorship, totalitarianism threats to the Organization? Has it been considered one of the worst case scenarios? Why wasn’t it prepared?
    equality72521lkrupp
  • Reply 3 of 10
    Bloody hell.
  • Reply 4 of 10
    radarthekatradarthekat Posts: 3,823moderator
    ivanh said:
    Is there a risk management committee in the board? Are CCP, dictatorship, totalitarianism threats to the Organization? Has it been considered one of the worst case scenarios? Why wasn’t it prepared?
    Seems like Apple was prepared and acted accordingly.  They closed stores and corporate offices and coordinated with their manufacturing partner which was delaying the return of personnel from the Lunar New Year break.  As a result, not a single case of the virus has been reported to have been contracted at an Apple facility. 

    How prepared should a business be?  And please don’t say they shouldn’t be manufacturing or having stores in China.  A disruptive disaster can occur anywhere.  War, for one.  Civil unrest for another.  Without moving manufacturing and sales into the vacuum of space a business can’t plan to completely avoid all potential issues that might be disruptive.   
    edited February 2020 wonkothesanenetmageStrangeDaysmuthuk_vanalingamlolliver
  • Reply 5 of 10
    ivanh said:
    Is there a risk management committee in the board? Are CCP, dictatorship, totalitarianism threats to the Organization? Has it been considered one of the worst case scenarios? Why wasn’t it prepared?
    Seems like Apple was prepared and acted accordingly.  They closed stores and corporate offices and coordinated with their manufacturing partner which was delaying the return of personnel from the Lunar New Year break.  As a result, not a single case of the virus has been reported to have been contracted at an Apple facility. 

    How prepared should a business be?  And please don’t say they shouldn’t be manufacturing or having stores in China.  A disruptive disaster can occur anywhere.  War, for one.  Civil unrest for another.  Without moving manufacturing and sales into the vacuum of space a business can’t plan to completely avoid all potential issues that might be disruptive.   
    Agreed, but control over any rebuild process following a catastrophic event must also be considered. At the very least production must be diversified, something I believe Apple were addressing before this terrible event. At some point bottom line must bow to strategic safety. Best. 
  • Reply 6 of 10
    ivanh said:
    Is there a risk management committee in the board? Are CCP, dictatorship, totalitarianism threats to the Organization? Has it been considered one of the worst case scenarios? Why wasn’t it prepared?
    Seems like Apple was prepared and acted accordingly.  They closed stores and corporate offices and coordinated with their manufacturing partner which was delaying the return of personnel from the Lunar New Year break.  As a result, not a single case of the virus has been reported to have been contracted at an Apple facility. 

    How prepared should a business be?  And please don’t say they shouldn’t be manufacturing or having stores in China.  A disruptive disaster can occur anywhere.  War, for one.  Civil unrest for another.  Without moving manufacturing and sales into the vacuum of space a business can’t plan to completely avoid all potential issues that might be disruptive.   
    Solar flares would be an issue in space. ;)
    netmagelolliver
  • Reply 7 of 10
    spice-boyspice-boy Posts: 1,450member
    I think Tim was talking about saving lives not profits, so few of you understand this. 
    netmage
  • Reply 8 of 10
    Rayz2016Rayz2016 Posts: 6,957member
    spice-boy said:
    I think Tim was talking about saving lives not profits, so few of you understand this. 
    I read some of the posts here, and I wonder if some people think that a few more deaths would be okay as long as it meant Apple as taken down a notch. 

    Apple is doing the right thing. In the scheme of things, the phone is not that important. 

    Having said that, and with regard to the retail employees case:
    Don’t appeal. Pay up. 
    lolliver
  • Reply 9 of 10
    Question is: is it safe to purchase anything manufactured in China in 2020? I have some concerns.
  • Reply 10 of 10
    blah64blah64 Posts: 993member
    torobo said:
    Question is: is it safe to purchase anything manufactured in China in 2020? I have some concerns.
    Not sure how serious your question is, but yes it's safe to purchase items manufactured in China.

    Most goods are shipped by sea, so by the time they get here, and possible contamination would be loooong dead and gone.

    For goods shipped via air, directly to you as a consumer, I suppose you could set it aside for a few days if you're really worried about it.  Maybe if you have highly-compromised immune system or other conditions that make you a likely candidate for death if you catch it, but in that case you're probably already doing things like avoiding being out in public.

    You're far more likely to get infected from someone who is an asymptomatic carrier than a hunk of inanimate electronics.  That's why most countries are spending a lot of effort to make sure quarantines are in place.
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