Technology

Apple says it doesn't expect to meet its revenue guidance for this first quarter of 2020

The main reason? Coronavirus. But there are, essentially, to main factors for this

Silicon Valley is stepping up efforts to deal with the rapidly spreading pandemic. Photo: Shutterstock
  • According to Apple, the first factor for this statement is the slowdown on production;
  • The second factor is the lower demand for smartphones in China.

On Monday, Apple said, in a statement to investors, that it doesn’t expect to meet its revenue guidance for the first quarter of 2020 due to main factors related to the coronavirus epidemic. “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,” said the company.

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The first factor is the slowdown on production. “While our iPhone manufacturing partner sites are located outside the Hubei province — and while all of these facilities have reopened — they are ramping up more slowly than we had anticipated,”, said Apple.

The second factor is the lower demand for smartphones in China. “All of our stores in China and many of our partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic. We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can. Our corporate offices and contact centers in China are open, and our online stores have remained open throughout,”explained the company.

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Shortly after the statement, Apple was criticized for being “dependent” on China. The New York Stock Exchange operates low, pulled by a drop in the shares of the technological giant. The company reinforces that outside of China the demand for Apple products remains in line with expectations.