Apple Lowers March Revenue Outlook Amid Coronavirus Supply and Demand Issues
Apple announces it will fall short of its March quarter revenue goals due to slower manufacturing ramps and reduced Chinese consumer demand caused by the coronavirus outbreak.
Apple officially announces that it will not meet its revenue goals for the March quarter due to the ongoing COVID-19 coronavirus outbreak in China. The company states that work is resuming across the country following the extended Chinese New Year holiday, but the return to normal conditions proceeds much slower than originally anticipated.
The tech giant points to two primary factors causing the financial shortfall: constrained worldwide iPhone supplies and reduced customer demand within China. Although all iPhone manufacturing partner facilities are located outside of the Hubei province epicenter and have reopened, the ramp-up to full production remains significantly delayed.
Inside China, physical Apple store closures and reduced operating hours severely limit customer traffic, even though online stores stay open and corporate offices reopen. Apple plans to share more details during its upcoming April earnings call and is more than doubling its financial donation to support the global public health response to the virus.