Apple Stock Drops as Coronavirus Disrupts Supply and Demand
Apple shares fall after the company warns it will miss its March quarter revenue guidance due to the coronavirus outbreak impacting both manufacturing and retail operations in China.
Apple shares decline nearly two percent after the tech giant warns it will not meet its March quarter revenue guidance. The company attributes this shortfall to the coronavirus outbreak, which severely disrupts both supply and demand in China.
Although all of Apple's manufacturing facilities in China reopen, they ramp up production much more slowly than anticipated, leading to widespread iPhone supply shortages. Additionally, retail stores across the country face prolonged closures or operate with very low customer traffic as the extended New Year holiday keeps consumers at home.
Financial analysts respond by lowering their expectations for iPhone shipments and overall revenue. Major banks like Barclays and JPMorgan significantly reduce their quarterly volume forecasts and cut Apple's price target, reflecting the deep uncertainty caused by the health crisis.