MARCH 13, 2020
Statement from Dell Technologies – Dated 2/27/2020
By now, you are aware of the ongoing global outbreak of the COVID-19 coronavirus that has resulted in tens of thousands of confirmed cases around the world. Dell Technologies is monitoring the situation closely, and our top priority is to protect the health and safety of our employees, customers, partners and communities where we operate.
We’re managing the evolving situation, our business and supply chain operations. Relative to lead times, up-to-date information is visible to you and our sales account teams throughout the order process. Your account teams also will have access to your order status information and will continue to make this available to you upon request.
We’ve received many questions as to how Dell Technologies is protecting customers, partners and our own team members from the spread of the virus. We comply fully with all requirements of the countries in which we operate. In Greater China, we delayed our team members’ return from the Lunar New Year holiday and are imposing additional protective travel restrictions.
All Dell Technologies products are manufactured in accordance with the company’s global health and safety policy and undergo rigorous screening prior to shipment, regardless of factory location. All manufacturing facilities are prepared to institute quarantine protocols, if necessary, to protect the health and safety of employees, and prevent the spread of illness.
Currently, we’re encouraging our team members to use remote access/work from home and the transfer of work to another location, where allowed by role. The company is limiting any travel to, from and within mainland China, Hong Kong and Macau, and restricting travel through other impacted countries. If a team member has been in one of these areas, we’ve implemented a work-from-home protocol (not entering a Dell Technologies facility) for 14 days upon return from one of these locations. We’re also advising team members around the world of this travel restriction, as well as medical guidance for remaining healthy and reporting symptoms.
Additionally, Dell Technologies has donated 2 million Chinese Yuan to help combat the spread of the disease. The donation is being used to purchase much-needed materials, including surgical masks, protective clothing and eye protectors for local hospitals in Wuhan, under the guidance of the Ministry of Civil Affairs and the assistance of the China Youth Development Foundation and the Hubei Youth Development Foundation.
As this situation continues to evolve, Dell Technologies is assessing all options and mitigation plans to best manage and, accordingly, please consider this information current as of the date you receive this letter.
Statement from HP Canada – Dated 3/2/2020
I would like to provide an update on HP’s efforts to address the supply chain challenges resulting from the COVID-19 Coronavirus outbreak. While the situation remains fluid, we have implemented our global Business Continuity Plan and most HP factories in the affected area are back up and running (excluding Wuhan) and productivity throughout the region is steadily increasing.
Our efforts are now focused on continuing to scale productivity in each factory, working closely with our component suppliers and shipping providers to expedite orders as quickly as possible. Order status and potential delays on existing customer orders and/or repairs continue to be reflected in HP systems and will be regularly updated, including notifications via email upon order shipment or if your order is delayed.
As always, the well-being of our employees, our partners and customers and their families is our number one priority. We will continue to monitor the situation very closely and are responding in real- time to customer and partner inquiries and support issues. Please refer any questions regarding specific orders and/or repairs via your normal HP channels.
Statement from Panasonic – Dated 2/27/2020
As the coronavirus continues to impact global organizations, Panasonic is closely monitoring the effects on our business. Many of our factories and partner facilities were allowed to reopen on February10. However, the Chinese government has required each facility to provide protective materials which are limited in availability and many of the local governments are refusing admittance into certain provinces and cities, making the return to full production a challenge. As a result, our factories are experiencing difficulties procuring the necessary components to build product, which is having an impact on our own supply chain. We are continuing to work in real time to assess the exact impact on delivery, but this will not be fully understood for several days to weeks. As the situation evolves, we remain focused on our promise of customer first. We will continue to keep you informed of delays in product shipments and proactively communicate outcomes as quickly as possible.
We appreciate your business and we are sorry for any inconvenience this situation may cause.
Statement from Microsoft – Dated 2/25/2020
Microsoft has been actively monitoring the situation in China regarding the Coronavirus. First and foremost, the safety and wellbeing of our colleagues remains our top priority. This situation is dynamic and we will continue to work with local authorities and partners to ensure we make the best decisions in support of this objective.
The Chinese Government has extended production shutdown after Chinese New Year until Monday, Feb 10th and for some regions until Monday, Feb 24th. We recognize that it will take several weeks for the entire supply network to return to normal flow. As a result, we have updated any orders impacted with new dates through February 21st and will update orders impacted through February 28th this week.
Microsoft is committed to provide transparency as this situation unfolds. We continue to leverage our supply chain processes and partnerships with suppliers to minimize customer impact. We are monitoring the situation closely and will notify you of any further changes.
Thank you for your patience and understanding.
Statement from Lenovo Canada – Dated: 2/13/2020
In response to the globally reported coronavirus outbreak this past week, I want to share the measures Lenovo is taking to minimize any potential risks from this unfortunate global health crisis. We have three immediate priorities: the welfare and health of our workforce, helping those working to contain the virus, and ensuring the continuity of production across our manufacturing facilities in China.
With respect to our employees, we are engaged in communications with and following all guidance provided by global and local health authorities (for example World Health Organization and Centres for Disease Control and Prevention), particularly as it relates to travel restrictions to/from China and the Hubei (Wuhan) region. More specifically, we are avoiding all large-scale face-to-face meetings and enabling more working from home until the scale and impact of this is better understood.
Additionally, the Chinese Government has extended the Lunar New Year holiday period until end of February 2nd countrywide and to mid-February in select regions. With that, we expect short-term impact on production output from our manufacturing facilities in the affected regions.
As a result of the changes to the Lunar New Year holiday schedule in China, we are leveraging the full strength of our global manufacturing and distribution networks to minimize potential impact on our customers. Given our global footprint we are confident that we are well placed to handle the situation.
For customers with expected deliveries in the next few weeks there will likely be some delivery delays, but we will have a fully updated customer delivery schedule by early to mid-February, after the Lunar New Year holiday concludes.
As you will appreciate, this is a very dynamic situation that is evolving quite rapidly. While this unforeseen situation is certainly beyond our control, you have our commitment that we are doing everything we can within our power to mitigate any potential negative impacts to your business and our valued relationship.
Thank you for your support and understanding during this time.
Statement from Apple – Dated: 2/17/2020
As the public health response to COVID-19 continues, our thoughts remain with the communities and individuals most deeply affected by the disease, and with those working around the clock to contain its spread and to treat the ill. Apple is more than doubling our previously announced donation to support this historic public health effort.
Our quarterly guidance issued on January 28, 2020 reflected the best information available at the time as well as our best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10. Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors.
The first is that worldwide iPhone supply will be temporarily constrained. While our iPhone manufacturing partner sites are located outside the Hubei province — and while all of these facilities have reopened — they are ramping up more slowly than we had anticipated. The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues. These iPhone supply shortages will temporarily affect revenues worldwide.
The second is that demand for our products within China has been affected. All of our stores in China and many of our partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic. We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can. Our corporate offices and contact centers in China are open, and our online stores have remained open throughout.
Outside of China, customer demand across our product and service categories has been strong to date and in line with our expectations.
The situation is evolving, and we will provide more information during our next earnings call in April. Apple is fundamentally strong, and this disruption to our business is only temporary. Our first priority — now and always — is the health and safety of our employees, supply chain partners, customers and the communities in which we operate. Our profound gratitude is with those on the front lines of confronting this public health emergency.