(Reuters) – Apple Inc’s (AAPL.(O) said on Monday it would not meet its revenue guidance for the March quarter due to the corona virus outbreak is slowing down iPhone manufacture and the weakening of demand in China.
FILE PHOTO: The Apple Inc. the logo can be seen hanging at the entrance of the Apple store on 5th Avenue in Manhattan, New York, New York, USA, October 16, 2019. REUTERS/Mike Segar/File Photo
Apple’s factories in China have begun to re-open them, but they are ramping up more slowly than anticipated, the technology, the company said in a statement to its investors.
The world’s supply of Apple’s iphone will be limited as the sites are working at full capacity, the company said.
“The ipad, the iPhone, the deficiencies are of a temporary impact on the sales of the world”, according to the company.
In January, Apple forecast $63 billion to us $67 billion in revenue in the second quarter, which ends in March, ahead of estimates of $62.4 million.
The company said that it would be more information in the following transcript, at the end of April.
Apple has said that it will save the limitations due to the corona virus precautions had been taken in sales in China, with most of the shops will be closed or operate on reduced hours.
“We will have to phase out the re-opening of our store, and will continue to do so as fast and safely as we can,” the company said.
The changes follow a strong December quarter for iPhone sales, which have been used for the first time in over a year.
Analysts have estimated that the virus could slash demand for smartphones, with half of them in the first quarter in China, the world’s largest market for smartphones and tablets.
“We’ve talked about in a negative iPhone the full impact of the corona virus in the last couple of weeks, but the magnitude of this effect is to miss out on the revenue guidance in mid-February, it is clearly worse than the dreaded,” Wedbush analyst Daniel Ives wrote in a note.
Apple’s stock is expected to be the face of a knee-jerk reaction on Monday, when Wall Street’s opening after the Presidents Day holiday, Ives said.
Wedbush, said he remained optimistic that Apple would be able to recover from all of the corona virus the face of adversity.
“While it is trying to assess the impact of the iPhone is missing, and a potential bounce back in the last quarter, it will be in the front, in the middle of the Street, and we continue to be optimistic about Apple’s long-term,” Ives said.
The outbreak, the greater the pressure on China’s economy, with many companies struggling to restart production after an extended Chinese New Year holiday.
Fiat-Chrysler <FCHA.MI, Hyundai Motor Co (005380.KS) and General Motors Co. (GM.(N) have said their car lines, have been, are, or may be made by the Chinese factories, which have been slow to start due to the virus.
Reporting by Neha Malara, Bengaluru and Laila Kearney in New York; Editing by Dan Grebler and Peter Cooney