Apple Inc. does not expect to meet its quarterly revenue forecast because of lower iPhone supply globally and lower Chinese demand as a result of the coronavirus outbreak. Apple did not provide a new forecast for its fiscal second-quarter revenue on Monday.
The company initially said that it expected to report net sales between $63 billion to $67 billion in its fiscal second quarter. The company said it provided a wider range than usual in late January, citing the uncertainty around the coronavirus outbreak.
“As you can see from the range, anticipates some level of issue there. Otherwise, we would not have a $4 billion range,” CEO Tim Cook said at the time.
Apple makes most iPhones and other products in China coronavirus has caused it to temporarily halt production and close retail stores in China. Some Apple retail stores reopened in China with reduced schedules last week.
The company said on Monday that it “is returning to normal conditions slower than expected” after the extension of the Lunar New Year holidays. All iPhone manufacturing facilities in China have reopened, but Apple has said it still expects phone supply shortages around the world.
Apple is widely expected to announce a new, cheaper iPhone model this spring. It’s unclear if the delays in China will affect that launch.
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31 March, 2020