Foxconn statement: “Foxconn is closely monitoring the current public health challenge linked to the coronavirus and we are applying all recommended health and hygiene practices to all aspects of our operations in the affected markets. Our facilities in China are following holiday schedules and will continue to do so until all businesses have resumed standard operating hours.”
The Chinese government has extended the Lunar New Year holiday to encourage people to stay home and avoid further spreading the virus.
Investors and analysts will be watching Apple’s earnings report after the bell for any mention of the virus and its potential impact.
Apple execs talk coronavirus impact, iPhone strength
On its Q1 earnings call, Apple (NASDAQ:AAPL) +1.2% execs attribute the wider-than-usual revenue guidance range to the uncertainties in China due to the coronavirus outbreak.
CEO Tim Cook says Apple is monitoring the coronavirus situation and has limited travel to business-critical situations. The company has some suppliers in the Wuhan area but also has alternative sources. Retail sales in Wuhan are small, but retail traffic across the country has recently been impacted.
Cook says the iPhone 11 was the top-selling model during every week of the quarter, and the three newest models held the top three slots during the period.
The quarterly iPhone strength was boosted by continuing trade-in programs, which doubled Y/Y at Apple Stores.
CFO Luca Maestri says net cash is at $99B.
Apple had 480M paid subscribers at the end of 2019, nearly to its goal of 500M in 2020.
The company says the new Apple TV+ and Arcade services weren’t material to Services revenue this quarter.
Maestri notes that in moving from Q1 to Q2, Services revenue represents a higher proportion of revenue.
AMD’s Q4 report showed strength in gaming GPUs and Epyc server processors, with the latter offsetting some of the quarter’s semi-custom sales weakness.
Apple suppliers gain after strong earnings
Apple suppliers are on the move after the tech giant’s Q1 beats with strong iPhone and Wearables sales.
Movers include Skyworks Solutions (NASDAQ:SWKS) +1%, Cirrus Logic (NASDAQ:CRUS) +2.9%, Qorvo (NASDAQ:QRVO) +0.4%, Qualcomm (NASDAQ:QCOM) +0.4%, and Lumentum (NASDAQ:LITE) +4.2%.
Google building unified comms app – report
Google (GOOG, GOOGL) is building a mobile unified communications app for businesses that looks to roll up the functions of a number of its existing apps, The Information says.
That could help the company compete better with application suites from rivals like Microsoft (NASDAQ:MSFT), according to the report.
The app incorporates functionality from Gmail and Google Drive and includes Hangouts Meet and Hangouts Chat; it’s expected to be part of the company’s G Suite productivity offering.
