Breaking News: Apple to miss quarterly revenue forecast due to coronavirus outbreak

Apple (AAPL) said on Monday that its quarterly revenue forecast will be affected by the current Coronavirus outbreak in China. The company said the virus caused lower Chinese demand for its iPhones.  

Apple’s statement reads … “Our quarterly guidance issued on January 28, 2020, reflected the best information available at the time as well as our best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10. Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter”

Apple stated two main reasons for this: 

“The first is that worldwide iPhone supply will be temporarily constrained. 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 second is that the demand for our products within China has been affected. All of our stores in China and many of our partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic. We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can.

Apple stock has been up more than 20 dollars since the beginning of the year, and this news may cause the stock may go down when the market opens tomorrow.  

Disclaimer: Investingport.com owns Apple stocks.