Global iPhone Supply Shortage to Stunt Apple’s Revenue
Following Apple’s temporary suspension of stores and operations in China, combined with Foxconn halting manufacturing, the California-based company has been left reeling. The company told investors on Monday night that it was falling short of their previous revenue target of $63-67 billion. The revenue loss is largely due to the temporary constraints on iPhone production along with a significant absence of Chinese shoppers due to the coronavirus shutdown.
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Apple’s statement read, “Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result we do not expect to meet the revenue guidance we provided for the March quarter.”
The company in their statement described decreased customer traffic in stores during their reopening, with some stores operating at reduced hours. This recent revenue miss is the second such instance for Apple, both with regard to China, as the company previously slashed guidance due to weak iPhone sales.
Apple has expressed distress and support for those afflicted by the crisis, commenting, “As the public health response to COVID-19 continues, our thoughts remain with the communities and individuals most deeply affected by the disease, and with those working around the clock to contain its spread and to treat the ill. Apple is more than doubling our previously announced donation to support this historic public health effort.”
They continued, “The health and wellbeing of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues.”