Published: Tue, February 18, 2020
Electronics | By Kelly Massey

Apple warns of coronavirus causing iPhone shortages

Apple warns of coronavirus causing iPhone shortages

"We do not expect to meet the revenue guidance we provided for the March quarter", the company said in a statement, adding that it was "experiencing a slower return to normal conditions" than expected.

Apple said that "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". Additionally, stores that are open have been operating at reduced hours and with very low customer traffic.

It is the second time in the last 13 months that Apple has had to cut its forecasts due to problems in China, where it makes most of its products and more than one tenth of its revenue. Analysts on average estimated US$65.23 billion, according to data compiled by Bloomberg.

People wearing protective masks are seen in an Apple Store, as China is hit by an outbreak of the new coronavirus, in Shanghai, China, January 29, 2020.

2 more Indians on quarantined ship off Japan test positive for coronavirus
Japan has not been able to test all those on board the ship due to limited supplies of testing kits, facilities and manpower. The virus emerged in China late previous year , and outside of the country, the ship has had the largest number of cases.

The American hardware company also said that it "is more than doubling our previously announced donation" to help combat the disease. As China's return to work has proved halting, and the coronavirus itself more intractable than some anticipated, the company's change in guidance is nearly unsurprising.

Apple does not discloses how many iPhones it ships each quarter, but Kuo estimated that the company shipped about 38m during the first quarter of a year ago. "Our profound gratitude is with those on the front lines of confronting this public health emergency". In reverse, however, if Apple shakes off what investors could read as a short-term disruption to production and sales, other stocks could maintain short-term price integrity.

Apple issued a rare earnings warning on Monday, saying it would not meet quarterly revenue expectations due to the impact of the coronavirus, which will limit iPhone production and limit product demand in China.

Like this: