Apple warned that it will not be able able to meet the financial guidance it issued on January 28, 2020, for two reasons associated with the COVID-19 crisis in China:
- Worldwide iPhone supply will be temporarily constrained. Apple confirmed that its iPhone manufacturing partner sites are located outside the Hubei province and that all of these facilities have reopened. However, manufacturing is ramping up more slowly than anticipated. The company said iPhone supply shortages will temporarily affect its revenues worldwide.
- The demand for Apple products within China has been affected. All Apple stores in China and many partner stores have been closed. The company said it will gradually reopen retail stores as safety permits.
Apple also noted that customer demand for its products outside of China remains strong and in line with expectations.
https://www.apple.com/newsroom/2020/02/investor-update-on-quarterly-guidance/
