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Warning Of Coronavirus Impact Issued By FedEx And UPS, JPMorgan Contingency Plans For Virus Outbreak


03/04/2020


Warning Of Coronavirus Impact Issued By FedEx And UPS, JPMorgan Contingency Plans For Virus Outbreak
While the global coronavirus out break may have large impact on industries related to technology, air travel and the economy as a whole, there are some areas that may not be impacted as much as others such as product development.
 
According to analysts of the tech industry, it has been reported that there is been no apparent impact of the coronavirus outbreak in the research and development of Apple products that make use of a new mini LED technology. Compared to the OLED and LCD screens that are used in many devices, there are some advantages of the use of mini LED.
 
However, last month, Apple had issued a rare revenue warning for the first quarter of the current year because of a low demand for its products in China as well as because of the disruption of the China based supply china for its iPhones as factories have remained shut down since the Lunar New year holidays in January due to the concerns of the spreading of the virus outbreak. And even though many factories have started work in China, the production is well below their capacity.
 
On the other hand, its expectations and forecast for revenues for the fourth quarter of last year has been reduced by a supplier of radio chips for iPhones, Qorvo, from its previous expectations of between of $800 million and $840 million to its current forecast of $770 million, according to reports. The company is expected to report its Q4 results in the first week of May.
 
The coronavirus “has impacted the smartphone supply chain and customer demand more than anticipated,” Qorvo said. However the company has also noted that it is still not possible to estimate the actual impact of the breakout of the virus with “the magnitude, duration and geographic reach of the outbreak.”
 
The two largest parcel delivery companies of the world - FedEx and UPS, both issued warnings of a fall in the revenues from shipment of products for the first quarter of the current year because of the global outbreak of the coronavirus.
 
FedEx said that while it is continuing to run flights in and out of countries impacted by the virus outbreak, restrictions on travel could cause delay in delivery of some shipments.
 
With respect to UPS, the company’s Chief Financial Officer Brian Newman said at a conference that “the business obviously slowed.” While the time for making an exact assessment of the possible impact of the virus outbreak on its business is currently not possible, he also said that the company was seeing an increase in demand for its services this week.
 
Many companies that can, such as JPMorgan Chase & Co., is asking thousands of their employees in the United States to work from home in efforts to get together a contingency plan about shutting down of their office in the country in the case of an a nationwide outbreak of the virus.
 
(Source:www.pymnts.com)