Apple expects lower sales as iPhone production starts delayed

Apple has issued a revenue warning to investors amid the impact of the 2019-nCoV coronavirus outbreak in China. According to the company, the restart of iPhone production is slower than expected.

Apple expected to achieve revenues of between $85.5 billion and $89.5 billion in the period January through March. The company was already cautious with that wide margin, but in its message to investors, Apple states that it cannot live up to that expectation. This is mainly due to two factors, according to the company.

The first is that iPhone production is getting back up and running more slowly than expected, although production facilities are located outside the stricken Hubei province in China and are back up and running. Apple reports that the result is that there is too little supply of iPhones, which means that worldwide sales are temporarily lower.

The second reason for the sales warning is due to the temporary closure of Apple Stores and partner stores in China, resulting in lower demand for Apple products in the country. The shops that are open have adjusted hours and fewer visitors. Apple does report that it is gradually reopening its stores and demand outside of China is said to be in line with the company’s expectations.

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