Apple is telling retail store workers to expect a limited supply of replacement iPhones for the next several weeks
Apple is telling employees at its retail stores that its supply of replacement iPhones could be limited for weeks, Bloomberg reported on Wednesday. Apple often replaces customer devices when they're beyond repair, but the company informed employees that it's now facing a shortage of those phones, Bloomberg reported. The shortage is yet another sign of the impact that the coronavirus outbreak is having on Apple's business. Apple had temporarily closed stores and its suppliers halted factory operations, ultimately forcing Apple to lower its revenue goals for the quarter. Visit Business Insider's homepage for more stories.
Apple has warned its retail store employees that it is facing a shortage of replacement iPhones, Bloomberg reported on Wednesday. Retail staffers received an email notifying them that the devices, which are used to replace customers' phones when they're too badly damaged to fix easily, will be in limited supply for several weeks, according to Bloomberg. Employees at several stores also told Bloomberg they were running low on some individual replacement parts. Workers were instructed instead to offer customers loaner devices or mail out replacement devices when they become available, Bloomberg reported. Apple's internal note is the latest sign that the coronavirus outbreak is having a material impact on its business, and one of the first times Apple customers will be directly affected by the situation. Apple closed all 42 of its retail store locations in China in early February as the number of cases of the coronavirus disease, COVID-19, skyrocketed within the region. The company's supply chain, which is heavily dependent on factories in mainland China, has also been strained as many of those factories were forced to close temporarily. Following the closures, Apple reported that it did not expect to meet its revenue goals for the quarter, which it attributed to slowed iPhone production and reduced Chinese demand resulting from the outbreak. Apple has also, like many companies, restricted employee travel and has implemented additional measures to keep its retail stores clean, as companies take more aggressive steps to protect workers and customers. So far, the coronavirus has killed more than 3,200 people, mostly in China, and infected more than 95,000 around the world. It has spread to every province and region in China as well as at least 80 other countries. The outbreak has already had a major impact on the stock market as companies' global supply chains and operations face disruptions. Apple did not immediately return Business Insider's request for comment.SEE ALSO: Google stops all in-person interviews amid coronavirus fears Join the conversation about this story » NOW WATCH: Watch Elon Musk unveil his latest plan for conquering Mars
More like this (3)
Apple is offering store workers $100 toward work-from-home gear and a new stress-management tool as other retailers cut costs and layoff employees (AAPL)
Apple has begun offering a $100 reimbursement to store employees working from home and a new...Apple has begun offering a $100 reimbursement to store employees working from home and a new mental health benefit. The benefits signal that Apple is continuing to invest in its retail workforce as its stores remain closed. The offerings also come as other major retail chains are resorting to layoffs and furloughs as nonessential businesses across the US remain closed. Apple Stores outside of China have been temporarily closed until further notice since the middle of March. Visit Business Insider's homepage for more stories. As Apple begins asking some retail employees to work from home while stores remain closed, the company is offering workers reimbursements for purchasing work-from-home equipment and a new digital resource for managing stress, according to three current employees. Taken together, the benefits signal that Apple is continuing to invest in its brick-and-mortar workforce as retail chains across the country are suffering and resorting to furloughs and layoffs to cut costs amidst the coronavirus pandemic. Apple is offering a $100 reimbursement for retail staff who need to purchase equipment like an office chair or desk, the people said. Apple may also offer reimbursements for those who need to upgrade their internet plan. The tech giant also added a new wellness tool for retail employees in recent weeks through Sanvello, a digital service for managing stress and anxiety. It's the latest mental wellness perk for Apple workers, as the company had already been offering access to the meditation app Ten Percent Happier. Apple did not immediately respond to Business Insider's request for comment on the additional resources for workers. Apple said on March 13 that it would temporarily close all retail stores outside of Greater China to protect employees and customers as the coronavirus pandemic spread. That was just before states across the country began issuing policies to close nonessential businesses. Apple CEO Tim Cook said in a memo published on March 13 that all hourly employees will continue to receive normal pay, and Apple also recently said it intends to continue paying contract workers as well, as The Wall Street Journal reported. It recently began asking retail staff to work from home to help manage the influx of customers seeking assistance with their devices, as Bloomberg first reported. The move comes as the coronavirus pandemic has sent ripples through the retail, travel, and restaurant industries and has shaken the global economy as 90% of Americans are under orders to stay at home. Hundreds of thousands of retail workers are being furloughed or laid off at major chains like Macy's, JCPenny, the Gap, and others. Companies hit hard by the pandemic, like Amtrak, La-Z-Boy, and Mattress Firm are cutting 401(k) contributions to save cash, according to The Wall Street Journal. A record number of 6.64 million Americans filed for unemployment benefits in the week that ended on Saturday, coming after the figure spiked to an unprecedented 3.28 million the previous week. Apple has not yet said when it plans to reopen its retail stores, but a report from Bloomberg suggests stores will remain closed until May. Are you currently an Apple Store employee? Business Insider wants to hear from you. Contact this reporter at email@example.com.SEE ALSO: Apple is reportedly worried that people won't have the money to buy new iPhones this year, and it's an ominous sign of what's to come for people's finances Join the conversation about this story » NOW WATCH: Jeff Bezos reportedly just spent $165 million on a Beverly Hills estate — here are all the ways the world's richest man makes and spends his money
The tech giant, which will keep its stores in the China region open, becomes one of...The tech giant, which will keep its stores in the China region open, becomes one of the first retailers to shut its doors in an effort to halt the spread of the coronavirus.
Apple CEO Tim Cook tells office employees to work from home as the company plans to reduce 'human density' in stores amid coronavirus outbreak
In a memo sent to employees, Apple CEO Tim Cook urged some of the company's global...In a memo sent to employees, Apple CEO Tim Cook urged some of the company's global office employees to work remotely this week amid the spread of the novel coronavirus. While the policy is only applicable to workers at Apple's offices, the company has also instituted new efforts to limit "human density" at its retail locations. Apple's decision to allow employees to work remotely mirrors decisions made by other tech companies like Microsoft, Facebook, and Alphabet. Visit Business Insider's homepage for more stories. Apple CEO Tim Cook told office employees across the world can work from home as COVID-19, becoming the latest major tech company to allow remote work. In a memo to employees obtained by Bloomberg News, Cook offered employees at its global offices the opportunity to work from home for the upcoming week of March 9 to 13 "if your job allows." As Business Insider reported Friday, a source familiar with the matter said employees in Santa Clara Valley — the location of Apple's Cupertino headquarters, in the San Francisco Bay Area — had already been recommended to work from home. In the memo, Cook also said the company was working to reduce "human density and ensure those teams that are on-site can do their work safely and with peace of mind," Bloomberg reported. While the work-from-home option does not apply to workers at Apple's more than 500 global retail stores, the company said it would work to reduce the number of people in stores for Genius Bar appointments and at classes offered by the Cupertino, California-based company at its worldwide retail locations. The company previously enacted new measures in US stores meant to limit any spread of the virus such as the increased wipe-down of demo units, installing hand sanitizing stations, and increasing the number of cleaning staff at the stores. Apple in February temporarily shuttered its China retail locations to help limit the spread of the virus, though most locations have since re-opened. The work from home memo specifically applies to Apple employees in Santa Clara Valley and Elk Grove areas in California, Seattle, South Korea, Japan, Italy, Germany, France, Switzerland, and the UK, Bloomberg reported. Apple has repeatedly advised employees who feel sick to remain home from work and encouraged virtual meetings over those that require travel, according to a previous Business Insider report. It also encouraged employees to regularly wash their hands and avoid touching their faces. According to Bloomberg News, Cook said employees would continue to receive their usual pay while working from home. The new directive comes amid reports that Apple's supply chain has taken a hit amid the coronavirus outbreak. The virus has had a major impact on the production of the iPhone, which is not expected to improve until at least the second quarter of 2020. Other companies like Facebook, Twitter, Microsoft, Amazon, and Alphabet have all announced similar policies, restricting travel and directing employees in some of their global offices to work from home. COVID-19 has infected more than 106,000 people and killed 3,600 others, mostly in China, though the disease is spreading globally. So far, at least 21 people have died in the US as a result while hundreds of cases have been confirmed. Cook called the virus "unprecedented event" and a "challenging moment," Bloomberg said. Read more: A seafood salesman accused of smuggling $7 million worth of endangered baby eels has been sentenced How coronavirus is upending corporate America Costco says coronavirus fears gave it a sales boost and stirred up 'crazy' demand Parents are struggling to cope as coronavirus worries shut down schools, leaving kids scared and confusedJoin the conversation about this story » NOW WATCH: Jeff Bezos reportedly just spent $165 million on a Beverly Hills estate — here are all the ways the world's richest man makes and spends his money