Coronavirus claims its first corporate victim: Apple won’t meet quarterly revenue forecasts due to virus
Coronavirus claims its first corporate victim today as Apple announced it won’t be able to meet quarterly revenue guidance due to the coronavirus constraining its iPhone supply and demand for its products. The tech giant said the outbreak constrained iPhone supplies and hurt demand for its products 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.”
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 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 said in closing.