Apple CEO Tim Cook said on Tuesday that the company began limiting employee travel to China last week amid the coronavirus outbreak. Apple has closed one store in mainland China and reduced operating hours for other retail locations.
The virus is affecting the tech industry’s presence in one of its most vital markets, both for sales and manufacturing operations. Numerous other tech companies, including Facebook and LG, are also restricting employee travel to only business critical operations.
Foxconn, one of Apple’s lead supplier, said on Tuesday it did not expect the coronavirus to affect its manufacturing timelines. Yet it was not clear whether Apple had been experiencing any retail slowdowns in the country due to the outbreak or if it planned on adjusted its manufacturing plans separately.
Sales in the area around the city of Wuhan, where the coronavirus outbreak is said to have originated, are low. Apple says its retail traffic across the country has been negatively affected due to the situation.
Apple has already accounted for delay in reopening production facilities due to the holiday extension. Apple’s revenue projections for the upcoming quarter should reflect that, Cook said.