The company explained that its profits will also be affected by the fall in demand in China.
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Apple announced Monday that it will not reach its quarterly profit target, following a cut in the production of iPhones and a fall in demand in China, circumstances caused by the outbreak of the Coronavirus Сovid-19 coronavirus, which has already left more than 1,800 dead world level
The apple company, which manufactures most of its smartphones and other products in the Asian country, estimated at the end of January that its revenues in the second fiscal quarter would be between 63,000 million and 67,000 million dollars.
However, in a statement for investors and the press, Apple admitted that it is “experiencing a slower return of what happens under normal conditions “, such as those that the company had anticipated after the extended holidays of the Lunar New Year.
Shortage of supplies and falling demand
First, the company predicts that “the global supply of iPhones will be temporarily limited,” because, while all manufacturing plants in China have been reopened, they are increasing their activity more slowly than expected. “This shortage of supplies for iPhones will temporarily affect worldwide income“, advances the statement.
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On the other hand, Apple notes that the demand for its products in China “has been affected.” “All of our stores in China and many of our associated stores have been closed. In addition, those that remain open have been operating at reduced hours and with very little customer traffic,” the company explains, although it is certain that it is “gradually reopening” its retail stores and will continue to do so “as consistently and safely as possible”.
“Apple is fundamentally strong, and this interruption in our business is only temporary“, says the technology giant, which says it will provide more information in April and ensures that its first priority” is the health and safety “of its employees, supply chain partners, customers and the communities in which it operates .
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