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Apple announces coronavirus will prevent it from reaching Q2 2020 forecasts

For the first quarter of 2020 (Q1 2020), Apple had reported sales of $ 91.8 billion. The manufacturer had announced that it anticipates a turnover placed between 63 and 67 billion dollars for the second quarter of 2020 (Q2 2020). However, the coronavirus has just put a stick in the wheel for Apple and the manufacturer announces that it will not be able to reach its forecasts set for the month January, February and March.

“Our quarterly forecast released on January 28, 2020 reflected the best information available at the time, as well as our best estimates of the pace of return to work after the extended Chinese New Year vacation ended on February 10. Work is starting to resume in the country, but we are witnessing a return to normal conditions slower than expected. Therefore, we do not expect to meet the revenue forecasts we have provided for the March quarter due to two main factors.

The first is that the global iPhone offering will be temporarily limited. Although our partner iPhone manufacturing sites are located outside of Hubei Province – and although all of these facilities have reopened – they are growing more slowly than we had anticipated. The health and well-being of everyone who helps make these products possible is our top priority and we are working in close consultation with our suppliers and public health experts as this ramp continues. These iPhone shortages will temporarily affect worldwide revenues.

The second is that demand for our products in China has been affected. All of our stores in China and many of our partner stores have been closed. In addition, the open stores operate at reduced hours and with very low customer traffic. We are gradually reopening our stores and will continue to do so as regularly and safely as possible. Our offices and contact centers in China are open and our online stores have remained open.

Outside of China, customer demand in our product and service categories has been strong to date and in line with our expectations.

The situation is changing and we will provide more information during our next call for results in April. Apple is fundamentally solid and this disruption to our business is only temporary. Our first priority – now and always – is the health and safety of our employees, supply chain partners, customers and the communities in which we operate. Our deep gratitude goes to those on the front line facing this public health emergency. “