Gene Munster: Closing stores could cost Apple 1-2% of March revenue

“We applaud the leadership role Apple has assumed in taking these steps despite the near-term negative impact on revenue.”  — Munster

From “Apple Takes Leadership Role in COVID-19 Response,” a note sent Saturday to Loup Ventures subscribers:

The impact of retail closings:

    • Apple is closing all its retail stores globally until March 27.
    • We estimate that Apple retail accounts for 8% of revenue.
    • Closing all stores for two weeks outside of China adds about 1-2% revenue headwind to the March quarter.
    • Some of the sales that would have happened in-store will shift online, which will somewhat offset the negative impact…

Relief for Apple Card holders:

    • Allowing Apple Card holders to skip their March payment without penalty.

Giving:

    • Apple is matching employee donations two-to-one related to the COVID-19 response.
    • Apple is doing it right, winning the long game in the hearts and minds of consumers by treating them with compassion.

My take: When it comes to this kind of stuff, Apple owns the high road.

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