Apple Lowers Revenue Guidance Citing The Coronavirus Outbreak Concerns

Apple has today lowered its March quarter earnings estimate citing two factors, the first is that worldwide iPhone supply will be temporaril...

Apple has today lowered its March quarter earnings estimate citing two factors, the first is that worldwide iPhone supply will be temporarily constrained due to the spread of coronavirus, and the second being that the demand for the products within China has been affected by it. Therefore, the company don't expect to meet the revenue guidance it provided for the March quarter.

Our quarterly guidance issued on January 28, 2020 reflected the best information available at the time as well as our best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10. Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors.

Apple, however, noted that demand for products and services didn't slow down despite the coronavirus outbreak. "Outside of China, customer demand across our product and service categories has been strong to date and in line with our expectations," Apple says in a press release.

Apple is monitoring the situation, as it is evolving, and will provide more information during the next earnings call in April. Right now, the iPhone maker is gradually reopening retail stores and will continue to do so, while the online stores have remained open throughout, the US-based tech giant's corporate offices and contact centers in China are open, too.

Apple also said that they are more than doubling the previously announced donation to support this historic public health effort.

So far, there are 71,451 coronavirus cases around the world, and has caused 1,776 death globally.