Apple Will Miss Quarterly Guidance Because of Coronavirus

statement on the company’s website, Apple says its guidance on January 28 “reflected the best information available at the time as well as our best estimates about the pace of return to work follo...
Apple Will Miss Quarterly Guidance Because of Coronavirus
Written by Matt Milano

Apple has informed investors it will miss its quarterly guidance as a result of the coronavirus, COVID-19.

In a statement on the company’s website, Apple says its guidance on January 28 “reflected the best information available at the time as well as our best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10.” In the interim, however, COVID-19 has continued to challenge governments and medical personnel around the globe, especially in China where much of Apple’s production is.

According to the statement, Apple believes two factors will prevent it from meeting its guidance.

“The first is that worldwide iPhone supply will be temporarily constrained. While our iPhone manufacturing partner sites are located outside the Hubei province — and while all of these facilities have reopened — they are ramping up more slowly than we had anticipated. The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues. These iPhone supply shortages will temporarily affect revenues worldwide.

“The second is that demand for our products within China has been affected. All of our stores in China and many of our partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic. We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can. Our corporate offices and contact centers in China are open, and our online stores have remained open throughout.”

While unfortunate, this news is not entirely unexpected. Analysts have been predicting iPhone production would be impacted as a result of the virus, and so far it shows no sign of abating.

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