Apple warned revenue in its current fiscal quarter would fall short of its forecast due to manufacturing and retail shutdowns caused by the outbreak of Covid-19 (coronavirus) in China.
The company in January predicted revenue of between $63 billion and $67 billion for its fiscal Q2, the period from 29 December 2019 to late-March 2020, but in a statement said no longer expects to meet the figures quoted.
Apple cited a slower-than-expected return to normal operations at Chinese production facilities following a shutdown for the Chinese New Year holiday earlier this month, which was extended to help stymie the spread of the disease.
It also expects lower device sales in China, with health concerns prompting the closure of all of its stores Apple said it is working to reopen retail outlets “as steadily and safely as we can”.
While Apple noted global demand for its products remained strong, it predicted the device shortage will “affect revenues worldwide”.
Though the situation continues to evolve, Apple insisted the company “is fundamentally strong, and this disruption to our business is only temporary”.
Apple’s iPhone remained the single largest contributor to revenue in fiscal Q1 2020, accounting for $56 billion of the $91.8 billion total. Greater China was the company’s third-largest market behind the Americas and Europe, with sales of $13.57 billion.