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| (Edited) Photo by Alexandr Bormotin on Unsplash |
Due to its main production base in China, Apple seems like it will be the most affected tech company by the outbreak of coronavirus, Apple's plans to mass-produce iPhone 9(SE) were disrupted after the Chinese New Year holiday was extended and employees return to work was delayed constantly.
Apple released an Investor update on Feb 17th saying that they do not expect to reach the revenue guidance they provided for the March quarter. Apple gave two reasons for this, firstly because the supply of the iPhone was temporarily limited, even though manufacturing sites were re-opened, they are ramping up more slowly than Apple had anticipated.
Apple says that the health and well being of people who are working at the iPhone production sites is their main priority, These iPhone supply shortages will temporarily affect revenues worldwide.
The second reason for a less than expected first-quarter revenue is the temporary drop in demand for Apple products in China, even though the retail shops were re-opened in China, the working hours were reduced and the customer traffic was low which is understandable because buying luxury products will be the least priority to most of the Chinese people.
Apple noted that "Outside of China, customer demand across our product and service categories has been strong to date and in line with our expectations."
Apple concluded that statement by saying,
"The situation is evolving, and we will provide more information during our next earnings call in April. Apple is fundamentally strong, and this disruption to our business is only temporary. Our first priority — now and always — is the health and safety of our employees, supply chain partners, customers and the communities in which we operate. Our profound gratitude is with those on the front lines of confronting this public health emergency."
Apple said it will more than double the previously announced donation to support the public health effort in treating coronavirus.