Coronavirus hits Apple, company to miss revenue target
Outbreak constrained iPhone supplies, hurt demand in China.
Apple on Monday said it will likely fall short of its revenue guidance in the second quarter due to the ongoing impact of coronavirus on its operations in China.
“Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” Apple said in a press release. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors.”
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Apple said that "worldwide iPhone supply will be temporarily constrained" as coronavirus impacts its manufacturing efforts in China. While none of Apple's production facilities are located in Hubei province, the epicenter of the outbreak, the manufacturing sites have been slow to return to normal operations. In addition, virus-related fears among the local population and government-imposed measures to slow its spread have impacted foot traffic at Apple stores in China.
The iPhone maker said last month that it expected sales between $63 billion and $67 billion in the second quarter. At the time, the company said it provided a wider range of guidance than usual because of uncertainty related to coronavirus.
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"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," the company added.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 167.04 | -0.96 | -0.57% |
Apple said it has doubled its previous donation to coronavirus response efforts. As of Monday, coronavirus had killed 1,770 people around the world and sickened thousands more.