The new coronavirus could have a lasting impact on global supply chains
Multinationals have failed to take seriously the risk of disruption
TO GLIMPSE THE impact of the new coronavirus on global businesses, consider Apple. Such is the American tech titan’s reliance on the Chinese mainland for parts and assembly that United Airlines typically shuttles some 50 of its executives between California and China each day. But not at the moment. United and other carriers have suspended flights to and from China. A lack of workers meant that after the end of the lunar new-year holiday Foxconn, which makes most of Apple’s iPhones in China, could not get its assembly plants back to full capacity this week. Analysts reckon that the virus could lead to Apple shipping 5-10% fewer iPhones this quarter and could scupper its plans to ramp up production of its popular AirPods.
This article appeared in the International section of the print edition under the headline “A deadly disease disrupts”
From the February 15th 2020 edition
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