Apple Reduces Revenue Forecast Due to Coronavirus Impact

With the novel Coronavirus spreading through the earth, the tech industry has seen a huge touch on equally well. Since China is the country with the highest number of confirmed COVID-19 cases, supply chain and manufacturing for most major technology companies have been affected. Fifty-fifty MWC 2020, the biggest smartphone effect of the year was cancelled due to Coronavirus fears.

At present, Apple has released an investor update informing stakeholders that the Cupertino giant is reducing its sales forecast for the year due to the impact of Coronavirus. Due to this, the visitor does not expect to meet its revenue guidance for Q2 2020.

In its update, the company said that while its "quarterly guidance issued on January 28, 2020 reflected the best information available at the fourth dimension", the company is "experiencing a slower return to normal conditions than [information technology] had predictable. Every bit a upshot, [Apple does] not expect to meet the revenue guidance [it] provided for the March quarter."

The company highlighted two primary reasons backside it cutting its revenue guidance for the second quarter of the year. The kickoff being the constrained iPhone manufacturing due to conditions in Prc — while most of Apple tree's partner manufacturers take restarted work, production is ramping upward at a slower pace than predictable.

2d, Apple says that the demand for its products in China has reduced. The company said, "All of our stores in China and many of our partner stores have been airtight. Additionally, stores that are open up have been operating at reduced hours and with very depression customer traffic. We are gradually reopening our retail stores and volition go on to do so as steadily and safely as nosotros tin."