Apple announced Monday that it is set to miss its revenue guidance for the first quarter of 2020. It follows the supply chain becoming “constrained” and sales in China falling.
Coronavirus Stifles Supply Chain and Demand
Apple said that production at factories in Hubei province, the epicenter of the outbreak, is “ramping up more slowly than we had anticipated,” following their reopening. This is limiting iPhone supply. In addition, the company said that “demand for our products within China has been affected,” although demand for devices and services elsewhere is “in line with our expectations.”
It is worth noting that during its latest earnings call, Apple deliberately issued wider than usual revenue guidance. In its update, the company said that this “reflected the best information available at the time.”
Furthermore, Apple announced that it is doubling its donation to help tackle coronavirus. Tim Cook announced the original donation on January 25.
The company said: Or thoughts remain with the communities and individuals most deeply affected by the disease, and with those working around the clock to contain its spread and to treat the ill.