The Banking Executive - Decemebr 2021, Issue 156

Covid-19 Impact On Tech Companies INTRODUCTION The Covid-19 outbreak caused an economic hardship for many indus- tries and businesses across the globe. In just a few months, the COVID-19 crisis has brought about years of change in the way companies in all sectors conduct business. Technol- ogy sector wasn’t an exception and the pandemic had a significant im- pact on the industry as well. From impacts on raw materials supply, to disruption to the electronics value chain, to inflationary risk on prod- ucts. On a positive note, the disrup- tion has caused an acceleration of remote working, and a rapid focus on evaluating and de-risking the end- to-end value chain. In addition, there may be potential carbon emission re- ductions, which could result in re- newed focus on sustainability practices. The pandemic forever changed the business and office culture, remote working has been integrated every- where, and now it is no longer a problem, as companies and employ- ees already adapted. In addition, there was a positive side as well in tech industry, as the business world went through digitalized transforma- tion, which is impossible without technology involvement. Below the Statista’s graph highlights the indus- tries and their components (Person- nel, Operations, Supply chain, Revenue) affected by Covid-19. For the High Tech and Telecommu- nications Industry, the evaluation is: - Personnel -3 - Operations- 4 - Supply Chain- 5 - Revenue-5 - Overall Assesment-4 APPLE - Revenue (TTM): $268.0 billion - Net Income (TTM): $57.2 billion - Market Cap: $1.4 trillion - 1-Year Trailing Total Return: 59.8% - Exchange: Nasdaq The COVID-19 pandemic acutely hit Apple's device production and de- vice sales in affected countries like China, Italy, South Korea, the United States, as many of Apple's suppliers in those countries were forced to shut down production for several weeks in early February 2020. Apple had a record fiscal year and doubled its stock last year, despite the store closures around the world, supply chain disruptions and strained finances for many customers. Apple announced net profits of $11.25 bil- lion ($2.55 per diluted share) on rev- enues of $58.3 billion (Q2, 2020). The company’s revenues were up 1% compared to the year-ago quarter with profits up by 4%. Projected coronavirus (COVID-19) impact index by industry and dimension - minor (1) to severe (5) in 2020 Source: Statista ISSUE 156 DECEMBER 2021 the BANKING EXECUTIVE 23