Apple Inc AAPL plans could be affected by the new Omicron variant of the COVID-19 virus, journalist Mark Gurman said in the latest edition of his newsletter.
What Happened: Gurman noted that the variant is not forcing “any major changes” for Apple currently but as more information becomes available, he expects some shifts in the operations of the company led by Tim Cook.
“The new variant could potentially limit foot traffic at retail stores, and combined with price hikes for food and gas, that could have an impact on sales in the all-important holiday season,” wrote Gurman.
See Also: How To Buy Apple (AAPL) Shares
Why It Matters: Gurman noted that Wall Street expects Apple’s revenues to approach $118 billion and meeting this target would require a combination of good supply, strong demand, and Omicron “not throwing a wrench in the economy during the holiday season.”
Apple’s fourth-quarter revenues missed the consensus estimate of $84.55 million in October. The Cupertino, California-based tech giant reported $83.4 billion in revenues at the time.
Supply chain issues and power conservation measures in China were attributed by Loup Funds Managing Partner Gene Munster for the fall in Apple Sales.
Even so, the buzz surrounding “Apple Car” took the tech giant’s shares to record highs last month.
Gurman said in November that Apple’s car plans have gone “full throttle” under the watch of Kevin Lynch, the Apple Watch software chief.
Price Action: On Friday, Apple shares closed nearly 1.2% lower at $161.84 in the regular session and fell almost 0.4% in the after-hours session.
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