COVID19 has shattered almost every normal of our life, including that of businesses. Unemployment numbers in the United States continue to rise, jobless claims are also reaching pre-recession levels. Every business sector has been forced to shut its doors, rely on government allowances and aid, and has had to layoff workers.
Apple from the start of the pandemic made clear that it would be impacted, lowering this quarter’s revenue expectation early on. On April 30th, Apple announced much stronger than expected earnings, signifying that the company is financially strong to make it through the pandemic.
In the eye of the public, the biggest signal of impending disaster came when Apple shut down all of its stores around the world to limit them becoming a hotspot for the virus to spread. But, even with Apple having to shut down its stores, it still promised to pay retail workers the same amount, something no other company would even contemplate doing. Apple quickly reallocated resources making retail staff take on support positions online, and invested in “Today at Apple, At Home.”
In its Q3 call, Apple CEO Tim Cook said that the companies services like Apple Music, Arcade, and others are seeing its best times ever. Apple’s service is clearly fueling the companies ability to financially navigate through this period of time. But it isn’t just services that are helping. Apple also released a new iPhone SE and 13-inch MacBook Pro during the height of the global crisis, even helping its suppliers make money
A new report today by CNET highlights that despite the markets falling, and stores closing, Apple and other major Silicon Valley companies are still hiring. Respectively, Apple, Amazon, and Microsoft currently have at least 2,000 jobs listed as hiring on their websites. Alongside the jobs, Apple will still host its internship program during the summer for more than 1,000 students. A company spokesperson said:
“We believe it’s important to keep this pipeline of opportunity going, and we will extend to our interns the same precautions and care that we’re extending to all our other personnel as a part of the ongoing COVID-19 response,”
In March, pre-peak of COVID19, all San Fransico Bay Area companies including Apple saw a 17% growth in new jobs compared to the same time last year. The report also notes that with Apple employees working from home, the company may begin to rethink how it conducts business.
Many top Silicon Valley companies, such as Apple, Facebook and Google, notoriously expect employees to come into the office, even if it means enduring grueling hours-long commutes. That attitude is beginning to change though, as employees push for more-flexible work hours while they’re taking care of kids home from school or family members kicked out of nursing homes.CNET
A report by Bloomberg at the start of the pandemic highlighted the challenges and positives of the work-from-home procedures. However, in the long-term Apple may look to maintain some of its staff working from home instead of coming into the office.
The report by CNET also highlights some of the struggles that smaller startups are facing. From lack of willing workers to the inability to conduct work from home. Apple, Google, Linkedin, and YouTube have however offered recommendations and advice to these startups on how to move forward.
What the report made clear is that Apple is in a strong financial position to get out of COVID19 with very little consequences on its earnings or actual business model. For further proof, check out our analysis of Apple’s Q3 earnings here.