Apple warns coronavirus will hurt iPhone supplies

Apple has warned that disruption in China from the coronavirus will mean revenues
falling short of forecasts. The tech giant said production and sales were affected, and
that "worldwide iPhone supply would be temporarily constrained".
The iPhone maker is the first major US company to say that the epidemic will hit its
finances. Apple said that "while our iPhone manufacturing partner sites are located
outside the Hubei province - and while all of these facilities have reopened - they are
ramping up more slowly than we had anticipated.
The head of the International Monetary Fund, Kristalina Georgieva, has said there could
be a cut of about 0.1-0.2 percentage points to global growth, but stressed there was
much uncertainty about the virus's economic impact.
Analysts have estimated that the virus may slash demand for smartphones by half in the
first quarter in China, which is the world's biggest market for the devices. The car
industry is another sector that has been affected by disruption to its supply chain. Last
week, the heavy equipment manufacturer JCB said it was cutting production in the UK
because of a shortage of components from China.
US deal with China is a victory for Trump, but more still needs to be done
For decades, multiple presidential administrations did little while China flouted the rules
and gained an unfair advantage in the international trade market. That changed when
President Trump took office, and his consistently tough stance led to a "phase one"
trade deal between the United States and China last week. And while it doesn't solve all
of the trade issues between the United States and China, it's a good start.
In addition to easing tensions between the two nations, the deal requires structural
reforms to China's economic and trade regime in the areas of intellectual property,
technology transfer, agriculture, financial services and currency and foreign exchange,
according to the Office of the US Trade Representative. It also includes a commitment
by China to purchase $200 billion more in US goods and services over the next two
years.
In the short term, the deal is a ceasefire. It releases some of the pressure on the US
economy and will help farmers. The deal calls for China to purchase $32 billion in US
agricultural products over the next two years.
It's true that the trade war has claimed casualties. America's farmers have been
suffering. China responded to Trump's tariffs by placing crippling tariffs of its own on
American agricultural products. US production costs have also risen as the two
economic superpowers take turns throwing haymakers.
Still, Trump has been right all along and China's willingness to come to the negotiating
table is proof. Trump's tariffs have hit China where it hurts.