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Coronavirus, production risk for Apple and other multinationals

The Coronavirus, which is spreading at great speed, also risks affecting the production of products of global multinationals, such as Apple - Numerous Chinese cities quarantined - Now it's also the turn of employees of factories in China

Coronavirus, production risk for Apple and other multinationals

Not only is China paying the consequences of the coronavirus, but also i main Chinese partners of the largest multinationals have been brought to their knees by the Chinese virus. Rather drastic preventive measures have been put in place in an attempt to control its spread. The measures concern the ban on the circulation of cars, the closure of airports, but above all the invitation to stay at home as much as possible.

For example, the Foxconn, the largest original electronic equipment manufacturer for Amazon, Apple, Microsoft, Motorola, Nintendo, Nokia, Sony, ordered its employees who were visiting Taiwan to extend their stay.

Problems especially at home Apple Lossless Audio CODEC (ALAC),, given that China is the most important operationally country after the United States. According to the Japanese newspaper Nikkei, Apple had asked its Asian suppliers to increase iPhone production by 10% more than last year. The news was reported in view of the financial results which will be disclosed tomorrow 29 January.

In particular, according to the magazine, Apple would have received orders for up to 65 million units of older models and up to 15 million pieces for the economic version which will be presented in March.

The problem, however, concerns the spread of the epidemic that is worrying the whole world and which could be an obstacle for the increase in production required, causing numerous delays and a possible postponement of the launch of the new iPhones, if the situation does not improve by May -June, as Apple's main suppliers are located in the neighboring provinces of Henan and Guangdong. There don't seem to be too many problems with Apple Cloud servers, according to which they don't require a lot of staff and a lot of maintenance.

In reality, many large exporting companies have to deal with the lethal virus, including the automotive sector, such as Peugeot, PSA Group, Honda and Nissan they had to arrange for the evacuation of their employees.

PSA group spokesman Pierre-Olivier Salmon said he wanted to start deporting French nationals from Wuhan by the middle of this week. The spokesman of General Motors, the largest US company in China, said it is evaluating the situation day by day, without extending, for the moment, the period of closure of the factories, beyond February 2, especially as regards the Wuhan plant which has more than 6 thousand employees.

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