Business

Apple to miss Q2 revenue guidance due to effects of coronavirus

Apple cites the effects of coronavirus for missing the second-quarter guidance the company issued the same time it released the first-quarter earnings. The technology company has temporarily closed its stories in China while keeping the corporate offices and contact centers in operations.

Apple said the brand is experiencing a “slower return to normal conditions that we had anticipated.” It points to the limited delivery if iPhone supply because the smartphone’s manufacturing sites are located just outside the Hubei province, where the coronavirus originated. “These iPhone supply shortages will temporarily affect revenues worldwide,” the company said in its statement.

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Even if Chinese brands of mobile devices are dominating worldwide shipments and sales, for Apple, China remains a big market. The closure of its stores in the country, an initiative to protect employees and customers from the threats of coronavirus, is expected to significantly affect its sales revenue. However, the company said customer demand for products and services outside of China remains stable.