In a rare investor update on Monday, Apple said the global effects of the coronavirus outbreak have a significant impact on business results. The company does not expect to meet its own revenue guidelines for the second quarter due to the impact of the virus and warns that “global iPhone delivery will be temporarily limited.” Closing stores and reducing store traffic in China are also expected to have a significant impact.
All Apple iPhone partner sites have been reopened, but “are running slower than we expected”, which means fewer iPhones are being produced than expected. As result, “[t]These iPhone delivery shortages will temporarily affect global revenue, “says Apple.
Regarding Apple’s presence in China, the company said it “gradually re-opens our stores and continues to do so as steadily and safely as possible.” The company says its offices and contact centers are open in China.
In his last profit call at the end of January, Apple’s CEO Tim Cook said that Apple already had a “wider than normal” revenue range for the second quarter due to uncertainty about the corona virus. However, it seems that the revenue range was not large enough to explain the growing impact of the emergency on public health.
Apple also said it would be a doubling previously announced donation to help with the help of the corona virus, although the company did not state that figure in dollars.