CONNELL: BACK TO THE NEWS WE BROUGHT YOU AT THE TOP OF THE

BROUGHT YOU AT THE TOP OF THE HOUR.

HOUR. TO SUSAN LI.

TO SUSAN LI. WHAT DID APPLE SAY?

WHAT DID APPLE SAY? >> APPLE WILL NOT MEET SALES

>> APPLE WILL NOT MEET SALES TARGETS IN CHINA.

TARGETS IN CHINA. THIS TIME IT IS CORONAVIRUS IN A

THIS TIME IT IS CORONAVIRUS IN A STATEMENT THEY WILL NOT MEET THE

STATEMENT THEY WILL NOT MEET THE SALES TARGET FOR THE

SALES TARGET FOR THE FOURTH QUARTER.

FOURTH QUARTER. THEY'RE BASICALLY SAYING THAT

THEY'RE BASICALLY SAYING THAT WORLDWIDE iPHONE SUPPLY IS

WORLDWIDE iPHONE SUPPLY IS TEMPORARILY CONSTRAINED EVEN

TEMPORARILY CONSTRAINED EVEN THOUGH MOST OF THEIR SUPPLIERS

THOUGH MOST OF THEIR SUPPLIERS AND MANUFACTURERS, THE COMPILERS

AND MANUFACTURERS, THE COMPILERS ARE OUTSIDE OF HEBEI PROVINCE

ARE OUTSIDE OF HEBEI PROVINCE THEY STILL HAVE A LOT OF PARTS

THEY STILL HAVE A LOT OF PARTS SHORTAGES TAKING PLACE AND A LOT

SHORTAGES TAKING PLACE AND A LOT OF FLUX SHALL WE SAY IN TERMS OF

OF FLUX SHALL WE SAY IN TERMS OF WHICH OF THESE FOXCONN FACTORIES

WHICH OF THESE FOXCONN FACTORIES ARE REMAINING OPEN, WHICH ONES

ARE REMAINING OPEN, WHICH ONES WILL BE CLOSED.

WILL BE CLOSED. WHEN THE FULL RETURN OF WORKERS

WHEN THE FULL RETURN OF WORKERS GET BACK AFTER THE LUNAR NEW

GET BACK AFTER THE LUNAR NEW YEAR HOLIDAY AND THE CONSTRAINT

YEAR HOLIDAY AND THE CONSTRAINT WE'VE SEEN FROM THE CORONAVIRUS

WE'VE SEEN FROM THE CORONAVIRUS AS WELL.

AS WELL. THEY SAY DEMAND IS STILL THERE.

THEY SAY DEMAND IS STILL THERE. WE HAVE SEEN A LITTLE BIT OF A

WE HAVE SEEN A LITTLE BIT OF A DIP IN DEMAND BECAUSE PEOPLE ARE

DIP IN DEMAND BECAUSE PEOPLE ARE NOT ALLOWED TO LEAVE THEIR HOMES

NOT ALLOWED TO LEAVE THEIR HOMES TO GO BUY THEIR iPHONES.

TO GO BUY THEIR iPHONES. PRODUCTION IS A BIT CONSTRAINED

PRODUCTION IS A BIT CONSTRAINED AS WE KNOW MORE THAN HALF OF

AS WE KNOW MORE THAN HALF OF THE iPHONES ARE BUILT AND

THE iPHONES ARE BUILT AND COMPILED STILL IN CHINA BUT THIS

COMPILED STILL IN CHINA BUT THIS IS TEMPORARY.

IS TEMPORARY. DON'T FORGET APPLE IN THEIR MOST

DON'T FORGET APPLE IN THEIR MOST RECENT QUARTER REPORTED RECORD

RECENT QUARTER REPORTED RECORD SALES AND REVENUE IN THIS

SALES AND REVENUE IN THIS TRANSITION TO SERVICES IS STILL

TRANSITION TO SERVICES IS STILL ON GOING.

ON GOING. WHETHER OR NOT WE GET THE

WHETHER OR NOT WE GET THE CHEAPER iPHONE THIS SPRING I

CHEAPER iPHONE THIS SPRING I THINK IS PROBABLY IN QUESTION

THINK IS PROBABLY IN QUESTION GIVENT SUPPLY CHAIN DISRUPTIONS

GIVENT SUPPLY CHAIN DISRUPTIONS WE'VE SEEN FROM THE CORONAVIRUS

WE'VE SEEN FROM THE CORONAVIRUS OF THE GUYS?

OF THE GUYS? LAUREN: SUSAN LI.

LAUREN: SUSAN LI. A STOCK WE WATCH TOMORROW.