Apple says it is closing all of its stores outside China until March 27 due to the spread of COVID-19 and plans to pay its hourly workers during the closures

Apple today announced that it is closing all of its retail locations outside of Greater China until March 27 due to the continuing spread …

MacRumors 2020-03-14 Juli Clover

Context & Ripple Effects

This is the escalation of a two-week sequence: Apple first shut its 17 Italian stores on March 12 "until further notice", then confirmed its 42 China stores — closed through February — would reopen with reduced hours. Today it flips that geography, closing everything outside Greater China while the region that reopened first becomes the only one still trading.

The commitment to pay hourly workers during the closure is the notable operational detail: Apple is absorbing payroll cost on zero retail revenue, and the December coverage showing nearly 100 stores closed again as cases surged confirms this was the start of a repeatable cycle rather than a one-off.

First-order effects

Apple's hourly retail staff outside Greater China keep drawing pay through March 27 while every store generates no sales, a direct cost Apple chooses to carry rather than push onto workers.
Apple's retail footprint effectively inverts: Greater China, shut for most of February, is now its only fully operating store base, with all other markets dark.

Second-order effects

Rival consumer-electronics retailers face the same forced choice Apple just made — close and pay, or stay open — with Apple's paid-closure move setting the public benchmark for worker treatment.
With physical retail paused, purchase demand routes to Apple's online store and delivery channels, accelerating the shift of its sales mix away from storefronts.

Third-order effects

If the pattern holds — and the December wave of closures suggests it does — store operations become a flexible cost Apple opens and closes with infection curves, and paid closure during shutdowns becomes an expected standard for large hourly employers.

The trend: COVID-19 is turning flagship retail from fixed infrastructure into a flexed cost center, with Apple's China-first reopen and paid closures as the template other large retailers will be measured against.

Discussion

@tim_cook Tim Cook on x
In our workplaces and communities, we must do all we can to prevent the spread of COVID-19. Apple will be temporarily closing all stores outside of Greater China until March 27 and committing $15M to help with worldwide recovery. https://www.apple.com/...
@davidsirota David Sirota on x
You are a TRILLION DOLLAR company — and you are boasting of contributing just $15 million to the cause of stopping a lethal pandemic that threatens all of humanity https://twitter.com/...
@tomwarren Tom Warren on x
Apple is closing all of its stores worldwide outside of China until March 27th due to coronavirus. Apple CEO Tim Cook quotes Abraham Lincoln on the global fight, because quoting Trump would be quoting an orange, lying, irresponsible joke of a president https://www.theverge.com/..…
@joannastern Joanna Stern on x
Apple: All our stores are closed. Samsung: Come to our stores to get your phones cleaned. https://www.wsj.com/...
@obrien Chris O'Brien on x
Might I humbly suggest that while this is a great gesture, Apple spent $81 billion on dividends and stock buybacks in 2019. You could suspend this program for a year make a massive contribution. https://twitter.com/...
@reneritchie Rene Ritchie on x
Apple COVID-19 response: 🔒 Closing all retail outside greater China. 🙏 Donating $15m and growing 🙌 Matching employee donations 2:1 💵 Paying hourly workers as business-as-usual 📰 Providing trusted info on Apple News 🧑‍💻 Moving WWDC 2020 online https://twitter.com/...
@benwood Ben Wood on x
Bold move by Apple to close all of its retail stores outside of Greater China until March 27. Hard to argue against this approach but makes me fearful for other retailers who don't have the balance sheet to weather extended closures. I fear for the British high street especially.…
@elamin88 Elamin Abdelmahmoud on x
Apple is closing all its retail stores globally, except for the ones in China — but will continue to pay store employees as normal for the period of the closure https://www.theverge.com/...
@macrumors @macrumors on x
Apple's Statement: - ALL Apple retail stores outside China will close til March 27 - Apple has committed $15 million in donations - Apple is matching employee donations 2-to-1 - Flexible work arrangements / Extended leave policies - All hourly workers will be paid - WWDC online h…
@markgurman Mark Gurman on x
Story: Apple to Shut its Nearly 470 Non-China Stores Until March 27, Move to Remote Work https://www.bloomberg.com/... https://twitter.com/...
@melissaldavey Melissa Davey on x
Tech giant Apple is closing all stores until 27 March due to Covid-19. “All of our hourly workers will continue to receive pay in alignment with business as usual operations.” https://www.apple.com/...
@pschiller Philip Schiller on x
#WWDC 2020 kicks off in June with an all-new online format https://www.apple.com/...
@markgurman Mark Gurman on x
Official: WWDC 2020 will be online.
@neilcybart Neil Cybart on x
Apple announces WWDC 2020. - 100% online format. - Will include an online keynote. - $1M will go to local San Jose organizations to offset revenue loss from going online. https://www.apple.com/... https://twitter.com/...
@markgurman Mark Gurman on x
No date yet either for the conference. This gives Apple some fluidity too in case things are running a week or 2 behind. Obviously, in this case, no one wants Apple to have that benefit. I'd imagine they do the keynote at the Steve Jobs theater with a thin employee audience. http…
@stevekovach Steve Kovach on x
Apple says it'll donate $1 million to San Jose organizations to offset losses now that the in-person events are canceled for WWDC https://www.cnbc.com/...
@stevekovach Steve Kovach on x
An extremely Apple-y spin on WWDC in-person event cancellation. No mention of “coronavirus.” Online format is a “new experience” and “innovative.” (Apple's doing the same thing other tech companies are doing for canceled conferences.) https://www.cnbc.com/...
@dhh @dhh on x
“We are delivering WWDC 2020 this June in an innovative way to millions of developers around the world, bringing the entire developer community together with a new experience” — THIS IS THE BEST PANDEMIC CONFERENCE WE'VE EVER DONE. WE'RE REALLY EXCITED. https://www.apple.com/...
@detroitborg Michael Kukielka on x
WWDC going online only, I can definitely attend this one! https://developer.apple.com/ wwdc20/
@cocoaphony Rob Napier on x
Why can't Apple speak like a normal company? I had to read this three times just to be clear that they mean “there is no WWDC in San Jose this year.” And I still don't know what it *will* be. Stop burying the lede. Compare: https://events.google.com/io/ https://www.apple.com/...
@canoopsy @canoopsy on x
Looks like it's my first Apple Event invite! https://twitter.com/...
@jonostrower Jon Ostrower on x
Truly a renaissance in tortured euphemistic PR phrasing. #covid19 https://twitter.com/...
@ianstechyt @ianstechyt on x
We should all have access to the app and have an “applause” button so we can all give them virtual applause for everything that gets announced. https://twitter.com/...
@leahculver Leah Culver on x
Honestly this is the best thing that could happen for Apple developers, regardless. 📱✨ WWDC has become unaffordable and unobtainable! Online is the way to go. 👏🥳 https://twitter.com/...
@javi @javi on x
Lol someone joked that Apple wouldn't say that WWDC was gonna happen online because of Coronavirus, but instead would claim that they came up with a brand new online experience for it. And that's exactly what they've done. https://twitter.com/... https://twitter.com/...
@aurelienche Aurlien C. on x
In the most Apple move possible, #WWDC is not “cancelled” but “brings a completely new online experience to millions of talented and creative developers around the world” https://developer.apple.com/ ...
@neilcybart Neil Cybart on x
Apple's WWDC 2020 press release is pretty bare bones. An online format was the obvious path forward. The details (which likely are still being worked out) will be interesting. For example, how will this online keynote work? What about the developer / Apple engineer labs?
@backlon Dieter Bohn on x
Apple's WWDC 2020 is online-only press release doesn't include the word “coronavirus” or “covid,” just one mention of “the current health situation” and a million bucks to San Jose businesses. https://www.theverge.com/...
@neilcybart Neil Cybart on x
An interesting time to release this news. At the end of what can only be described as a chaotic week in the U.S. and around the world.
@macrumors @macrumors on x
WWDC 2020 details: - All-new online format due to coronavirus - June, but no specific days announced yet - Livestreamed keynote, will touch on future of iOS, iPadOS, macOS, watchOS, and tvOS - Online developer sessions - More details to follow at https://developer.apple.com/ wwdc…
@marcoarment Marco Arment on x
WWDC '20 is online-only: https://www.apple.com/... Most details TBA, but some interesting bits: - “Apple's entire global developer community” — sounds like “free” - Labs? “developers ... interacting in entirely new ways with the Apple engineers” - $1M in San Jose business relief
@tsuvik Vikas SN on x
2020 will essentially be a test run for a lot of events to try online only format. Wonder how many will move to this format from next year https://twitter.com/...
@_chuckyc Charlie Chapman on x
Welp, there it is. I'm not seeing anything about *how* it'll be a new experience. I'm very interested in what they'll do different to try to build the same excitement in the community they do with the in-person stuff https://twitter.com/...
@bzamayo Benjamin Mayo on x
Clearly they are still planning this stuff out as they haven't announced a more specific date than “June”. https://9to5mac.com/...
@scobleizer Robert Scoble on x
Apple sure knows how to announce things. https://twitter.com/...
@fromedome Dan Frommer on x
Fixed: Apple is committing $1 million to San Jose organizations to offset @thetalkshow live bar tab. https://twitter.com/...
@stalman Tyler Stalman on x
I guess I'll be attending my first WWDC online https://www.apple.com/...
@imyke Myke Hurley on x
I just realised, they haven't actually announced a date. Just ‘June’. https://www.apple.com/...
@caro_milanesi Carolina Milanesi on x
Ah the luxury of announcing later than others gives you the ability to make it look like a plan rather than a pivot #WWDC2020 fully online https://www.apple.com/...
@dylanbyers Dylan Byers on x
Apple Inc. is first company I've seen to reframe a coronavirus-forced scheduling change as an innovation: This year's WWDC will be “a completely new online experience.” https://9to5mac.com/...
@bungerkcbsradio Stan Bunger on x
Apple becomes the latest to shut down a big event. This June's #wwdc2020 will not be held in San Jose. It'll be held everywhere (a virtual event): https://developer.apple.com/ wwdc20/
@reneritchie Rene Ritchie on x
“Apple also announced it will commit $1 million to local San Jose organizations to offset associated revenue loss as a result of WWDC 2020's new online format.” https://twitter.com/...
@llsethj Seth Weintraub on x
World webinar dev conf https://twitter.com/...
@mattrosoff Matt Rosoff on x
There goes WWDC - last of the big four tech conferences that hadn't been canceled $AAPL https://twitter.com/...

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