Apple Warns of Revenue Shortfall as Coronavirus Disrupts iPhone Production
Apple admits it will miss its March quarter revenue guidance due to coronavirus-related iPhone supply shortages and dropping consumer demand in China.
Apple warns that it does not expect to meet its March quarter revenue guidance as the coronavirus outbreak significantly disrupts its Chinese manufacturing operations. Although iPhone production facilities outside of Hubei province are reopening, the factories are ramping up much more slowly than the company initially anticipates.
This slower-than-expected production ramp causes temporary iPhone supply shortages that affect worldwide revenues. Additionally, Apple reports that consumer demand for all its products within China drops sharply as the crisis restricts normal retail activity and daily life.
The warning triggers an immediate tumble in technology stocks as investors react to the news. The decline extends beyond Apple to impact other major tech firms that rely heavily on industrial production bases in the affected regions of China.