Apple says it will miss revenue targets because of coronavirus impact
Apple said today it will not meet its quarterly revenue guidance due to the coronavirus outbreak which has affected production and demand in China.
The company had previously forecast $63bn (£48bn) to $67bn in revenue for the quarter ending in March.
It did not give a revised forecast today.
Apple said that despite the fact that its production facilities in China have re-opened, they are ramping up slower than expected.
It said the production interruption would lead to iPhone supply shortages which would “temporarily affect revenues”.
Apple also said that the outbreak had hit demand in China.
It said all of its stores in China and many of its partner stores have been closed.
Apple said stores that are open have been operating reduced hours with very low customer traffic.
The company said it was gradually reopening its retail stores and would continue to do so “as steadily and safely as we can”.
In January, Apple beat profit and revenue estimates for the quarter, despite worries that the spread of the virus may have hit its numbers.
The iPhone creator reported earnings of $4.99 per share for the three months to the end of December 2019, above estimates of $4.55 per share. It marked a record profit of $22.2bn, the largest Apple has posted for any quarter to date.
Revenue came in at $91.8bn compared to estimates of $88.5bn, a rise on nine per cent year on year and trouncing Apple’s own guidance for the quarter.
However the range of Apple’s guidance had widened compared to previous quarters, which chief executive Tim Cook said was down to the unpredictable nature of the virus’ rapid spread across China and other countries.
“There’s more uncertainty, it’s a very fluid situation,” Cook told CNBC.