Apple Warns Coronavirus Has ‘Constrained’ iPhone Production, Says It Won’t Meet Q2 Revenue Goal

Tech giant says both supply and demand for its products have been impacted by the outbreak

Apple on Monday warned investors it will not meet its revenue goal this quarter due to the fallout from the coronavirus, which has devastated China in recent weeks, and affected production on the company’s products.

The deadly virus outbreak has “temporarily constrained” iPhone production in China, Apple said in a statement, causing the company to fall behind schedule. In addition, the company said demand for its products has fallen off because of the outbreak.

“All of our stores in China and many of our partner stores have been closed,” the company said. “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. Our corporate offices and contact centers in China are open, and our online stores have remained open throughout.”

Apple, when its Q1 earnings report came out last month, guided for between $63-$67 billion in Q2 revenue. On Monday, Apple said “we do not expect to meet the revenue guidance” it had provided — but did not share an updated Q2 projection. Apple chief Tim Cook last month acknowledged the $4 billion range in its projection stemmed from the uncertainty surrounding coronavirus.

The tech giant’s stock price was relatively flat in after-hours trading.

As of Monday, 71,000 coronavirus cases and 1,700 deaths attributed to it have been reported worldwide, according to CNN.