Apple said Monday that the coronavirus is affecting the company more than previously thought and is having an impact on manufacturing.
The company lowered its guidance for earnings in the current quarter.
“We are experiencing a slower return to normal conditions than we had anticipated,” Apple said in a statement. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter.”
The iPhones are assembled in China, and factories located outside the Hubei province “are ramping up more slowly than we had anticipated.” The shortages will “temporarily” affect revenues worldwide, the company said.
Additionally, Apple’s been hit with sales issues in China.
The Apple retail stores there are closed, and the retail stores that are open “have been operating at reduced hours and with very low customer traffic.” Apple said it is gradually reopening its retail stores and will continue to do so “as steadily and safely as we can.”
“Apple is fundamentally strong,” the company said, “and this disruption to our business is only temporary. Our first priority – now and always – is the health and safety of our employees, supply chain partners, customers and the communities in which we operate.”
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