Apple posted an update to its quarterly guidance to investors from January, informing them to expect lower revenues and slower iPhone business.
Due to the health response to the outbreak of the Coronavirus, iPhone manufacturing factories are working slower than usual. The factories have re-opened, but are yet to ramp up production to meet Apple’s projected iPhone shipments. As a result iPhone stock will be affected, which includes all current models and likely the upcoming iPhone 9.
The letter also notes that Apple and partner stores are working limited hours and have received a limited number of customers in China.
All of this means that Apple will not meet its expected revenue for the March quarter and possibly beyond.
However Apple reassures that it’s “fundamentally strong” and that this disruption to its business is only temporary.