Apple Warns Coronavirus Impact Exceeds Worst-Case Forecasts
Apple reveals that the coronavirus outbreak severely disrupts its Chinese supply chain and retail operations, causing the company to miss its quarterly revenue targets.
Apple issues a surprising but expected warning that the coronavirus outbreak severely impacts its business operations. The company notes that both its supply chain and retail stores in China face major disruptions, causing the tech giant to fall short of its original quarterly revenue forecasts.
The virus affects Apple in two critical ways that analysts previously fear. Production delays in China hamper the company's ability to assemble iPhones, while forced store closures stifle consumer demand for these premium devices in an environment of economic uncertainty.
This announcement marks a sharp reversal from Wall Street's initial optimism just three weeks ago, when investors cheered Apple's initial guidance. Now, Apple admits that the actual impact of the outbreak exceeds its worst-case scenario from late January, causing its stock price to drop as the global health crisis unfolds.