Apple Misses Revenue Targets as COVID-19 Disrupts Global Supply Chains
Apple announces it will miss its revenue guidance due to manufacturing slowdowns and store closures caused by the COVID-19 outbreak. Analysts warn that prolonged production delays in China could lead to product shortages in the U.S. by mid-April.
Apple announces it does not expect to meet its recent revenue guidance due to widespread supply constraints and store closures caused by the COVID-19 outbreak. Although iPhone manufacturing partner sites outside of Hubei province reopen, they ramp up production much more slowly than the company originally anticipates.
Analysts note that current product inventories remain stable because companies shipped spring and early summer seasonal goods early to avoid tariff issues and the Chinese New Year. However, experts warn that if these manufacturing delays continue, consumers in the U.S. could experience out-of-stocks as early as mid-April.
While many Chinese factories resume operations, severe staffing shortages heavily limit their output as millions of workers remain under quarantine. Surveys reveal that 78% of U.S. companies with operations in China lack the necessary personnel to run full production lines, making workforce availability the top challenge for the near future.