Coronavirus causes a slump in Apple’s revenue
Apples revenue goals for first quater (Q1) affected?
The coronavirus outbreak has had an unprecedented effect on Apples revenue goals for the quarter.
In a statement released Monday, the company revealed that it did not fully anticipate the impact of the outbreak officially known as COVID-19, and were a bit optimistic due to revenue guidance from the end of January.
Apple cited the slow "ramping up" in its Chinese manufacturing facilities after Lunar New Year due to the extended break forced by the epidemic, as well as lower demand for iPhones, store closures (35 of the 42 Apple Stores in China remain closed), and reduced hours in the Chinese retail sector
Only seven of China's 42 Apple Stores have reopened since closing as a precaution against the novel coronavirus, COVID-19.
How will apple address the slump?
A slower return to normal conditions has affected work operations and the demand for Apple products has reduced as partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic.
Apple intends to address this slump by gradually reopening its retail stores but the safety of their staff is of a high priority. Meanwhile, corporate offices and contact centers in China are open, and online stores have remained open throughout.
The March quarter revenue figure given in the January predictions was $63 billion to $67 billion — which, CEO Tim Cook acknowledged, was an unusually large range, but took the unpredictability of the developing situation into account.