Get ready for iPhone shortages: Apple issues coronavirus revenue warning

Apple has just issued an investor update warning backers that its set to miss its quarterly revenue targets due to an incoming shortage of iPhones to sell. As it turns out, the cancellation of MWC isnt the only way the coronavirus is impacting the smartphone industry.

The worldwide iPhone supply will be temporarily constrained, the company explained, thanks to the coronavirus closing factories. Although Apples factories are all outside of the Hubei province where the outbreak began and are now open again, they are ramping up more slowly than we had anticipated.

Insisting that the health and safety of its workers is the primary concern, the company added that it would be working closely with its suppliers and public health experts to ensure that things return to normal in a manageable way.

But thats not the only coronavirus-related reason that Apples had to reassess its projected revenues: theres actual sales in China to contend with, as well. Not only has the company been forced to close all of its Chinese shops, but other stores that are open have been operating at reduced hours and with very low customer traffic. Given that around 18% of the world population lives in China, thats quite a big deal to the bottom line.

We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can, the company wrote.

The quarterly revenue target was $63-67 billion, but Apple didnt comment on what the new forecast would be, only promising that it will provide more information during Aprils earnings call. The company remained bullish overall though, stating that Apple is fundamentally strong, and this disruption to our business is only temporary.

Nonetheless, if youre planning on buying a new iPhone, you might want to get hold of one when you see it in stock. Because its not clear when iPhones will be free-flowing again for the time being.

Written by

Alan Martin

Alan Martin is a freelance writer with more than a decade’s worth of experience, mainly in the technology space, with bylines at The Evening Standard, Tom's Guide, The i and many others. His main focus at Expert Reviews is ensuring that your next pick of phone or wearable is the right choice for you and represents the best possible value for money. In the past he’s covered a broad range of games, dental apparel and pet accessories and, on one memorable occasion, had to strip off to retrieve a rogue drone from a lake – such is his dedication to reviews.

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