The company will miss its quarterly revenue targets, too
Apple has just issued an investor update warning backers that it’s set to miss its quarterly revenue targets due to an incoming shortage of iPhones to sell. As it turns out, the cancellation of MWC isn’t 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 Apple’s 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 that’s not the only coronavirus-related reason that Apple’s had to reassess its projected revenues: there’s 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, that’s 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 didn’t comment on what the new forecast would be, only promising that it will provide “more information” during April’s 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 you’re planning on buying a new iPhone, you might want to get hold of one when you see it in stock. Because it’s not clear when iPhones will be free-flowing again for the time being.