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Apple lowers revenue expectations for Q1 2020 due to coronavirus

Coronavirus has sickened iPhone sales revenue. (Image via Apple w/ edits)
Coronavirus has sickened iPhone sales revenue. (Image via Apple w/ edits)
Apple will not hit its estimated revenue target for this quarter. Citing supply chain restrictions caused by the coronavirus outbreak and falling demand in China, the Cupertino colossus will pull in lower-than-expected revenue. Apple's stock fell 3% in response.
Sam Medley,

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The coronavirus outbreak has affected the world on several fronts. The virus has heavily impacted the global tech industry, causing the cancellation of major events and forcing companies to restrategize. One such company is Apple, which announced that it will not hit revenue estimates for the first quarter of 2020.

In a post on the company’s newsroom website, Apple stated that it does “not expect to meet the revenue guidance [it] provided for the March quarter due to two main factors.” The first is that the iPhone’s supply chain has been “temporarily constrained” due to the closure of factories and production facilities in China. The coronavirus outbreak forced multiple points in Apple’s supply chain (as well as other tech companies’ supply chains) to close. This, in turn, has slowed or outright halted production. Fewer iPhones made means fewer iPhones could be sold, which obviously affects revenue.

Coronavirus isn’t the sole culprit for Apple’s lowered expectations. Demand for Apple products, primarily the iPhone, has steadily slowed in China. While the impact of the viral epidemic has worsened this decline, demand began to fall last quarter, well before the outbreak started. The coronavirus may have merely exacerbated the existing financial problems Apple faces in China.

Apple did not give a concrete estimate for revenue for this quarter, simply stating that it did not expect to meet its existing revenue guidance. Apple’s stock (AAPL) fell roughly 3% when trading opened Tuesday morning.

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Sam Medley
Sam Medley - Senior Tech Writer - 1129 articles published on Notebookcheck since 2016
I've been a computer geek my entire life. After graduating college with a degree in Mathematics, I worked in finance and banking a few years before taking a job as a database administrator. I started working with Notebookcheck in October of 2016 and have enjoyed writing news and reviews. I've also written for other outlets including UltrabookReview and GeeksWorldWide, focusing on consumer guidance and video gaming. My areas of interest include the business side of technology, retro gaming, Linux, and innovative gadgets. When I'm not writing on electronics or tinkering with a device, I'm either outside with my family, enjoying a decade-old video game, or playing drums or piano.
contact me via: @samuel_medley
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Sam Medley, 2020-02-18 (Update: 2020-02-18)