Get access to Protocol
In a rare update to its quarterly guidance, Apple said that even as work is starting to resume in China, coronavirus is having a bigger effect on its sales and production than originally expected.
Apple's note said that the company is likely to miss its revenue targets for the current quarter, for two reasons. First, that because of a "slower return to normal conditions than we had anticipated," supplies of iPhones are likely to be constrained worldwide. Second, that because coronavirus led to so many stores closing or reducing hours, sales in China have dropped. "Apple is fundamentally strong," the note said, "and this disruption to our business is only temporary."