Apple to miss revenue projections, blames coronavirus

Apple to miss revenue projections, blames coronavirus
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Apple will miss its revenue projections for the second quarter of the fiscal year, blaming the coronavirus outbreak for the lower-than-expected profits.

The company announced Monday in a letter to investors that it expects lower sales globally based on iPhone supply and Chinese demand. Originally, Apple had forecasted it would generate $63 billion to $67 billion in the time frame, but it has not provided an updated prediction. 

“We are experiencing a slower return to normal conditions than we had anticipated,” the letter reads. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors.”

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Apple had to temporarily shut down production of its iPhones and other products in China, its main country for manufacturing, after the coronavirus has spread throughout the country. All manufacturing facilities have been reopened but are “ramping up more slowly than we had anticipated” after the extended Lunar New Year holiday, the company said.

With the reduction in iPhone production, supply shortages are expected to affect Apple’s revenue globally.

Retail stores were also closed, but some have been reopened with decreased hours last week. 

“The situation is evolving, and we will provide more information during our next earnings call in April,” the letter reads. “Apple is fundamentally strong, and this disruption to our business is only temporary.”

The coronavirus has infected more than 71,000 and killed 1,775 globally, the vast majority of those in China.