The outbreak happened in Shenzhen, because of which the supplier Foxconn, which provides parts for Apple, Toyota and Volkswagen, had to stop operations and already cause troubles to Apple’s stocks as the price has fallen. Other Taiwan companies, such as Unimicron Technology Corp. also stopped operations, which caused supply disturbance to Apple and Intel.

Apple stock has traded 1,5% lower in premarket trading on Monday, after Foxconn – a major manufacturer of iPhone halted production. The Chinese company is already working on backup plants to reduce the disruption of production.

Multiple Chinese cities have already tightened restrictions and presented zero tolerance goal of suppressing contagion as quickly as possible. However, the government added that companies can work normally, if they can provide so called closed management system where employees would live and work in a bubble. This system was introduced also during Beijing Winter Olympics.

Movement of Apple in 5-year period. (Source: Trading Economics)