Apple will not meet its revenue guidance due to Coronavirus outbreak

Apple today announced that it will not meet the revenue guidance it previously released for the March quarter due to Coronavirus outbreak in China. According to Apple, the revenue will have impact because of the following factors:

• The supply of iPhone worldwide will be temporarily affected. Even though most of the iPhone manufacturing units have reopened — they are ramping up more slowly than Apple anticipated. Apple is working in close consultation with its suppliers and public health experts as this ramp continues. Due to supply shortages, Apple’s revenue will be affected worldwide.
• Demand for Apple products within China has been affected. For the past few weeks, most of the Apple stores in China and many of its partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic. Apple is gradually reopening its retail stores and will continue to do so.

Apple also mentioned that customer demand across product and service categories outside of China has been strong to date and in line with its 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,” Apple wrote in the press release.

Source: Apple