Request: Write CEO talking points based on previous work which is submitted. For the previous work, which was already completed and will be attached below, there is a 4-5 page paper detailing ONLY the recent economic impact for Apple, what has happened to the valuation/stock etc., supply chain impact, how it has reacted so far to the virus situation, what it has said or not said about it and how they’ve communicated with customers, and what is the expected long-term impact or road to recovery. You should read it first to understand the context. Next step, which represents the initial request, you need to provide one specific piece of communication material that Apple would use as part of their next quarterly earnings announcement. The element of choice is CEO Talking Points. For CEO talking points, make sure the message and brand value/brand image are clear. It should be mentioning Apple’s recent financial performance and accomplishment, new products/services, and also answering some main controversial news related to Apple recently. And this communication material is what Apple would use as part of their next quarterly earnings announcement. Also, the message should fit the audience group who will attend or pay attention to Apple’s next quarterly earnings announcement. 1 Table of Content Introduction ……………………………………………………………………………………… 2 Market Valuation /Stock Price Due to Covid 19 Pandemic ……………………………………… 2 Customer and Other Impacts …………………………………………………………………….3 Apple INC Reaction to The Current Pandemic and Their Statements Regarding This Subject….4 Communication with The Customers During the Pandemic ……………………………………..5 Wall Street/ Media Comments Regarding the Stock Changes of Apple Due to The Pandemic ….5 Long Term Impact/ Road to Recovery ……………………………………………………………6 Conclusion………………………………………………………………………………………..7 Reference ………………………………………………………………………………………..8 Appendix …………………………………………………………………………………………9 2 Covid-19 Impact On Apple Inc. Introduction Apple Inc. has significantly experienced impact on its device production and sales since the outbreak of covid-19 in January in China. The continued spread of the virus worldwide has affected Apple products’ production and supply in China, the United States, South Korea, and the world over. Stores have closed, and demand weakened, reducing the number of Apple products in the market. In the initial stages and up to October 2020, several stores were closed due to lockdowns resulting from the widespread of the virus. However, the company recorded significant Mac computers and iPhone sales due to stay-at-home recommendations. The Apple online platform is bridging the gap brought by closed retail stores. The company still manages to sell its products across the world (Fernandes, N. 2020). Apple Inc. innovates to make life better; kids must continue learning, and people must work whether remotely or going back to the offices. Market Valuation /Stock Price Due to Covid 19 Pandemic Several factories in china opened their doors, and Apple clients have continued buying iPhones and other devices online. Amid the gloom, the company has managed to shine thanks to its hugely loyal client base. The company is boasting a market value of $2 trillion and a stock value up 50% (Eric Rosenbaum, 2021). Apple is leading in the market cap, and the figure exceeds the GDP of most nations. The company’s stocks exceed most exchanges worldwide; it has broken the record to become the first company to hit $1 trillion and $2 trillion market cap as shown in chart 1. As of today, the Apple stock price stands at $133.60 as shown in Image 1. The 3 company shares are good on the log-term bet; it still has room to run. According to analysts, Apple stock will rise in the next 12 months to a high of $175.00. The company’s shares are trading at 5.4%, the best performance since last year October. It relied on its online platform to drive sales when most US citizens were at home, and several stores closed. From the numbers recorded, it is evident that in the face of the covid-19 pandemic, the company made huge sales. Wall Street analysts predict that Apple could reach a market capitalization of $3 trillion, citing the Apple Car’s development and the subsequent iPhones’ invention (Tim Higgins, 2020). Customer and Other Impacts Apple company will continue suffering due to covid-19 since a significant number of its clients are affected. Some of the people who had the ability to buys iPhones no longer afford them. Many people have lost their jobs while others have lost their lives or their loved ones. The pandemic has caused financial instability amongst Apple clients. The consumers are feeling less stable to purchase the expensive Apple device hence dwindling sales (Deb, P., Furceri, D., Ostry, J. D., & Tawk, N. 2020). However, the company is still recording high sales online, making it one of the best performing companies in the coronavirus pandemic era as shown in chart 2. Apple Inc.’s market targets are medium and high-income individuals or households. Studies show that a third of its users have an income of more than $100,000. The numbers indicate the clients’ ability to afford the devices when several people have limited resources. Covid-19 also had a severe hit on the supply chain; most Apple products had long shipping hours. The delayed device shipment meant that clients received their purchases later than expected. In both of Apple’s workplaces, new health checks and temperature tests are being implemented. Employees that need to take a break owing to COVID-19-related personal or family health conditions, such 4 as withdrawing from an infection, caring for a hospitalized loved one, involuntary quarantining, or childcare problems due to closing schools, would be accommodated. It is expected that this will keep safe not only their employees but also the potential customers who visit their stores. Apple INC Reaction to The Current Pandemic and Their Statements Regarding This Subject When it comes to the decisions they make, customers and owners are getting more ethical: they want honesty and social responsibility. In the midst of this increasing recognition, Apple’s value systems mentality resonates, and it’s expressed in the business’s own fundraiser and volunteer initiatives. Apple has contributed $15 million to the worldwide COVID-19 effort, both to help cure those who are infected and to help mitigate the pandemic’s overall social and economic effects. Apple Inc. has since responded to the pandemic in the best way it can. The company allowed their employees to work remotely; in addition, it guided interpersonal space for those on-site. The company encourages clients to use the online stores to purchase their desired Apple products. When covid-19 news began to spread last year January, Apple closed all its retail shops, contact centers, and corporate offices in China (Deb, P., Furceri, D., Ostry, J. D., & Tawk, N. 2020). The company did the same in other countries as the pandemic continued ravaging the world. In February 2021, Apple opened its stores in Greater China and other countries hence restoring the supply chain (Ivanov, D., & Das, A. 2020). The company plays a significant role in helping communities emerge stronger; it has made donations to the global covid-19 response to help treat the sick and lessen the economic burden of those who the virus has impacted. The 5 company has donated a total of $15 million worldwide for the same course. This also included significant contributions in the most affected areas such as Italy. Communication with The Customers During the Pandemic Communication plays a significant role in the society and human life; it facilitates information and knowledge sharing amongst different people. It also develops a great relationship with others. With this understanding, Apple company put in place ways through which clients could get help. Apple News, a subsidiary of Apple, launched a new covid-19 section where clients can find verified reporting from trusted news outlets. For service and support, the company directed clients to visit support.apple.com. The company also decided to have its worldwide developers conference online. The ability to communicate with clients and keep them updated on the products and the current situation has been a significant boost. The company can attend to their clients wherever they are; clients can also purchase devices from their places (Fernandes, N. 2020). When consumers inquire Siri concerning coronavirus, the firm promotes telehealth software in the App Store. It is speeding up the analysis of COVID-19 software from reliable outlets to ensure that consumers have access to the most up-to-date data rather than inaccurate or deceptive information. Wall Street/ Media Comments Regarding the Stock Changes of Apple Due to The Pandemic Apple Inc. recorded a significant uptick in sales of iPods and laptops due to the corona pandemic. The company has depended mainly on the sales of digital services, computers, and 6 other devices because students and workers worldwide are staying and working at home (Dwivedi, Y. K., Hughes, D. L., Coombs, C., Constantiou, I., Duan, Y., Edwards, J. S., … & Upadhyay, N. 2020). The company’s revenue, excluding iPhone sales, rose 25%, and Mac computers recorded $9 billion. Wall Street analysts are not scared; they see more room for iPhone shares running higher. The is a significant re-rating of Apple shares by investors in 2021, concentrating on its developing sections. Wall Street believes that the Apple business model will thrive the pandemic, leading to its market share’s upward take. Long Term Impact/ Road to Recovery From the Apple statement dated March 13, 2021, Tim explains that the company is on the road to recovery. The company is innovating to make life better. The covid-19 pandemic forced people to work from home hence needed devices to support these recent changes (Apple press, 2020). For example, teachers need tools for successful remote lessons. Medical experts can diagnose and reach millions with critical updates in a short time. The company is adapting and responding by innovating products to support a modern way of life. Apple has manufactured face shields for health workers and sourced more than 20 million N95 face masks for healthcare workers in the US. Apple chief is concerned with the health and safety of Apple employees, customers, supply chain, and the community. The company prioritizes people over revenue; it has upgraded Apple Watch and Apple Map to help in the fight against covid-19. The Apple Watch can detect respiratory illnesses like corona and flu. The Apple Map is capable of finding vaccination locations (Deb, P., Furceri, D., Ostry, J. D., & Tawk, N. 2020). 7 Conclusion Covid-19 has significantly impacted Apple device production and sales since the outbreak in January in China. The continued spread of the virus worldwide has affected Apple products’ production and supply in China, the United States, South Korea, and the world over. Several factories in china opened, and Apple clients have continued buying iPhones and other devices online. Amid the gloom, the company has managed to shine thanks to its enormously loyal client base. Apple Inc. has since responded to the pandemic in the best way it can. The company allowed their employees to work remotely and guided those who must be on-site. The company also decided to have its worldwide developers conference online. The covid-19 pandemic forced people to work from home, therefore needing devices to support these recent changes. The company is innovating to make life better. 8 Reference Apple press (March 13, 2020). Apple’s covid-19 response. https://www.apple.com/newsroom/ 2020/03/apples-covid-19-response/ Deb, P., Furceri, D., Ostry, J. D., & Tawk, N. (2020). The economic effects of Covid-19 containment measures. Dwivedi, Y. K., Hughes, D. L., Coombs, C., Constantiou, I., Duan, Y., Edwards, J. S., … & Upadhyay, N. (2020). Impact of COVID-19 pandemic on information management research and practice: Transforming education, work and life. International Journal of Information Management, 55, 102211. Eric Rosenbaum (Jan 4, 2021). Why Apple became a $2 trillion company in 2020′ and what could come next. CNN; https://www.cnbc.com/2021/01/04/whats-next-after-the-yearapple-became-a-2-trillion-company-wall-stree.html Fernandes, N. (2020). Economic effects of coronavirus outbreak (COVID-19) on the world economy. Available at SSRN 3557504. Ivanov, D., & Das, A. (2020). Coronavirus (COVID-19/SARS-CoV-2) and supply chain resilience: A research note. International Journal of Integrated Supply Management, 13(1), 90-102. Tim Higgins (Oct 29, 2020). Apple’s sales rise in pandemic, but pressure remains for breakout holiday season. The Wall Street Journal; https://www.wsj.com/articles/apple-aapl-4qearnings-report-2020-11604003762 9 Appendix Chart 1: Apple market valuation ! Photo by Financial Times ! Image 1; Apple performance 10 ! Chart 2: Apple sales Purchase answer to see full attachment Tags: Financial Performance Global sales Apple CEO device production purchase program User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.