Apple: Coronavirus impact will temporarily constrain iPhone supply
FOX Business’ Susan Li reports on how the coronavirus is impacting Apple.
Apple shares slid ahead of Tuesday’s opening bell after the iPhone-maker warned that fallout from the coronavirus will crimp quarterly sales.
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The uncertain outlook pressured suppliers in Asia and Europe, with TDK Corp. and Dialog Semiconductor both down more than 4 percent, and illustrated the wide-ranging economic fallout from the outbreak, which originated in Wuhan, China, and has sickened at least 72,436 people in the country while killing 1,868. The government has locked down more than 60 million people to curb the spread of the disease, and businesses from amusement parks to casinos, airlines and luxury retailers have taken hits.
“Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” Cupertino, California-based Apple said in a statement. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter.”
The iPhone maker previously predicted sales of $63 billion to $67 billion from January through March, its fiscal second quarter. The range was wider than usual due to uncertainty related to the coronavirus outbreak.
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Apple, which did not provide updated guidance, said both iPhone supply and consumer demand have been temporarily impacted by the outbreak.
Foxconn, which produces about half of China’s smartphone exports, including the iPhone, has reportedly restarted 10 percent of its operations but has pushed back against reports that it would return to 50 percent capacity before the end of February.