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On its Jan. 28 earnings call, Apple noted that it only had a few suppliers in the Wuhan area where the virus has been most severe. On that call, Cook said Apple had closed one store and that some retail partners had closed stores or reduced hours.
By Feb. 3 , though, Apple's stance had changed. "Out of an abundance of caution and based on the latest advice from leading health experts, we're closing all our corporate offices, stores, and contact centers in mainland China through Feb. 9 ," the company said.
Evercore ISI analyst Amit Daryanani recently noted that 381 of 775 manufacturing and supply locations in Apple's global supply chain are in China . That only two are actually in Wuhan is now besides the point. Transportation around the country has been restricted, air travel to China has been curtailed, and borders have been closed with Russia , Mongolia , and Vietnam ; many countries are quarantining visitors from China or simply not allowing them in. Foxconn -- Apple's primary manufacturer -- last week cut its 2020 revenue growth guidance to a range of 1% to 3% from 3% to 5%, citing the impact of the virus.
Japan's Nikkei newswire reported that three China -based contract manufacturers that produce Apple's popular AirPods have halted production and have at most two weeks of materials and parts on hand. On Apple.com, delivery dates on AirPods Pro orders are already a month out.
It isn't just Apple at risk. A Dell Technologies ( DELL ) spokesperson told me that it's "assessing all options and mitigation plans to help ensure our supply chain remains operational and we're meeting customers' needs." At HP Inc. (HPQ), the story is much the same. "Out of an abundance of caution, we have implemented certain travel restrictions for HP employees traveling to, from, and within Asia Pacific ," the company said.