The ‘Apple Store Index’ for Post-Coronavirus Economic Reopening
Josh Centers, writing at The Prepared:
Of course, Apple isn’t the only company in the world that’s hurt its bottom line in an effort to stem the tide of COVID-19, but what makes Apple particularly interesting is its enormous cash stockpile: $207.6 billion as of Q1 2020.
What that pile of cash means is that Apple isn’t desperate. Unlike say, a restaurant with deep debt and thin margins, or a hair salon with the rent coming due and no income, Apple isn’t forced to risk spreading a plague to keep the doors open. It has the enviable position to hold off until it’s safe for both its employees and customers. […]
Apple, being a wildly successful business even in the worst economic conditions, can withstand a lot more pressure to re-open than any politician. While many governors are having their arms figuratively twisted by President Trump and angry protestors, no one will be calling for Tim Cook’s head until at least Apple’s Q2 earnings report, due on April 30, 2020. Even then, years of strong performance under Cook and his prior experience in dealing with shareholder uprisings will insulate him for a long time.
So for that reason, no matter what my governor says, I won’t consider stepping into a crowd until Apple gives the all-clear.
I’ve been using this index — albeit untitled — since early March when Apple announced that they were closing all of their stores worldwide (apart from mainland China). The announcement itself was almost unbelievable, and it came well before other companies. This was when the threat of COVID-19 really became serious for me. Having worked in Apple’s retail stores for years, I have a deep trust in their threat assessment teams, and I trust Apple’s leadership to use the information those teams provide to make the most responsible decisions for their customers and employees. It was clear at that point that we were facing something unprecedented. In hindsight, it’s was clear that at that if Apple knew about the true gravity of the threat at that point, then so did the government, and they were keeping us in the dark.