Apple says will not meet revenue guidance for March quarter due to coronavirus impact
FILE PHOTO: The Apple Inc. emblem is seen hanging on the entrance to the Apple retailer on fifth Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo
(Reuters) – Apple Inc (AAPL.O) mentioned on Monday that it will not meet its revenue guidance for the March quarter due to the coronavirus outbreak affecting each manufacturing and demand in China.
The firm mentioned that although its productions services in China have re-opened, they’re ramping up slower than anticipated.
The firm had forecast $63 billion to $67 billion in revenue for the quarter ending in March, forward of estimates of $62.four billion.
Apple mentioned that provide for its iPhones will be “temporarily constrained” as manufacturing services in China are nonetheless not working at full capability. Sales of iPhones have been up for the primary time in a yr within the December quarter.
It additionally mentioned that retailer disruptions have affected its gross sales in China, with most shops both closed or working at decreased hours.
The outbreak is anticipated to pile strain on China’s economic system with corporations struggling to restart manufacturing after an prolonged new yr vacation as provide chains from the automobile business to smartphones stay disrupted.
Analysts have estimated that the virus could slash demand for smartphones by half within the first quarter in China, the world’s greatest market for smartphones.
Reporting by Neha Malara in Bengaluru; Editing by Sonya Hepinstall