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Apple lowers quarterly revenue guidance over coronavirus issues

Although Apple claims production is picking up overseas, it still doesn't feel confident in its revenue guidance due to the ongoing effects of the coronavirus.

TJ Denzer

February 18, 2020 9:49 AM

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As time passes and the ongoing efforts against the coronavirus outbreak continue, Apple is the latest to be affected by issues related to the disease. In a recent investor update, Apple declared that it would be scaling back expectations of previously forecasted revenue guidance, citing issues directly related to the coronavirus, which have influenced production, sales, and staffing of Apple products, services, and stores in China.

Apple released its latest investor update on February 18, 2020, addressing the issues and consequences of the coronavirus, as well its effect on Apple operations in the area. Apple specifically based its decision to lower quarterly revenue guidance based on two factors: the slow return to operation in various Apple production facilities and the demand and traffic for Apple products and sales in China, both affected directly by the virus.

“Worldwide iPhone supply will be temporarily constrained,” Apple wrote in the report. “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. The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues. These iPhone supply shortages will temporarily affect revenues worldwide.”

Apple iterates several times in the update that the health and well-being of its employees are the company priority. It has announced that it is investing heavily in donations of aid and support in the efforts against the coronavirus and that much of the outcomes around the two major factors of its report are based around efforts to safely return operations to working capacity without risk of safety.

Apple is hardly the first in tech to be affected by the coronavirus either. Nintendo has seen issues with Nintendo Switch production, including delays on the special edition Animal Crossing Nintendo Switch, and the Mobile World Congress 2020 has been canceled due to concerns about the outbreak. Despite their recent dedication to start producing more affordable iPhones shortly, Apple’s plans may be slowed like many others as the efforts to curb the coronavirus continue.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.