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Apple warns possible iPhone shortage due to coronavirus outbreak

  • BY Alexander Wong
  • 18 February 2020
  • 2:24 pm
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Apple has issued an update to its investors that it does not expect to meet its revenue guidance for its current March quarter due to the COVID-19 outbreak. While things have slowed down during the long Chinese New Year holiday season, Apple is experiencing slower return to normal conditions than expected.

According to the Cupertino company, they are expected to report a slower quarter due to two main factors. The first factor is that the worldwide iPhone supply will be temporarily constrained. Although iPhone manufacturing partner sites are located outside the affected Hubei province, its production is ramping up slower than expected. Apple emphasised that the health and well-being of every person that helps to make their products possible is its paramount priority. The company is working closely with its suppliers and public health experts as the ramp continues. The iPhone supply shortage will temporarily affect its revenues worldwide.

The second impact is lower demand in China as all of its stores and partner stores have been closed due to the outbreak. Remaining stores that are open are operating at reduced hours and have seen lower customer traffic. Apple is gradually reopening its stores and it will continue steadily as safely as they can.

The iPhone is the largest revenue driver for Apple. In the last quarter, they have posted a record quarterly revenue of USD 91.8 billion, which is an increase of almost 10% from the year before. According to the latest figures from the Ministry of Health, there are over 72,000 confirmed COVID-19 cases in China with 1,870 deaths reported so far.

https://twitter.com/KKMPutrajaya/status/1229603152011259905?s=20
Tags: AppleChinaCoronaviruscovid-19iPhone 11iPhone 11 ProiPhone 11 Pro MaxMobileWuhan
Alexander Wong

Alexander Wong

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