Concerns about the coronavirus led many companies to withdraw from MWC 2020 and eventually caused the event to be canceled altogether, and now we’ve learned that the disease is having an effect on another major company.
Apple today said that it will not meet the revenue guidance for the March quarter due to two factors, both of which relate to the coronavirus. First is that worldwide iPhone supply will be temporarily constrained and these supply shortages will affect revenues worldwide.
Apple explains that while its iPhone manufacturing partner sites in China have reopened following the Chinese New Year holiday, they’re ramping up more slowly than expected. The company adds that it’s working closely with its suppliers and public health experts as the ramp-up continues.
Secondly, Apple says that demand for all of its products in China has been affected. All of its stores in China as well as many of its partner stores have been closed, and those that’ve remained open are operating at reduced hours and have “very low customer traffic.”
When Apple announced its fiscal Q1 2020 results last month, it offered a guidance of $63 to $67 billion for the coming quarter. However, the company has not given a new guidance after this update.
While the news of Apple not meeting its guidance for the quarter doesn’t affect most consumers, it is worth noting that Apple expects worldwide iPhone supply to be constrained. There have been lots of shutdowns in China due to coronavirus concerns, and so it’s not a surprise to get this announcement from Apple, but it is something to keep in mind if you were thinking about buying a new iPhone in the near future.