Tags: Coronavirus | apple | iphone

Virus Fears Mean Apple Won't Meet Revenue Guidance

Virus Fears Mean Apple Won't Meet Revenue Guidance
A man wearing a protective facemask, amid concerns over the spread of the COVID-19 coronavirus, looks at his smartphone in Singapore last week. (Getty Images)

Monday, 17 February 2020 04:55 PM

Apple Inc. said on Monday that it will not meet its revenue guidance for the March quarter due to the coronavirus outbreak affecting both production and demand in China.

The company said that despite the fact that its production facilities in China have re-opened, they are ramping up slower than expected.

The company had forecast $63 billion to $67 billion in revenue for the quarter ending in March, ahead of estimates of $62.4 billion.

Apple (AAPL) said that supply for its iPhones will be "temporarily constrained" as manufacturing facilities in China are still not operating at full capacity. Sales of iPhones were up for the first time in a year in the December quarter.

It also said that store disruptions have affected its sales in China, with most stores either closed or operating at reduced hours.

The outbreak is expected to pile pressure on China's economy with companies struggling to restart production after an extended new year holiday as supply chains from the car industry to smartphones remain disrupted.

Analysts have estimated that the virus may slash demand for smartphones by half in the first quarter in China, the world's biggest market for smartphones.

© 2020 Thomson/Reuters. All rights reserved.

   
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Apple Inc said on Monday that it will not meet its revenue guidance for the March quarter due to the coronavirus outbreak affecting both production and demand in China.
apple, iphone
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2020-55-17
Monday, 17 February 2020 04:55 PM
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