The effects of the coronavirus epidemic have been widespread in the technology sector, having already forced organisers of Mobile World Congress to cancel the event which was originally set for later this month.
Sticking with the mobile world, Apple has weighed in on what effect coronavirus could have for its bottom line, citing the virus in a recent earnings guidance.
Speaking of its operations in China, where much of the company’s device manufacturing happens, Apple says things are slowing down.
“Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors,” the firm explained in a press release.
The first factor is a slowing of new iPhone supplies, with the company’s factories and partners in the Chinese region having reopened, but seen their operations ramp up far slower than normal due to the epidemic in the country at the moment.
China has also been cited for the second reason, as demand for Apple devices within the Asian nation is also slowing. This as all the Chinese iStores, as well as its retail partners, have been closed as a result of the coronavirus.
That said Apple says business outside of the region, and demand for devices in particular, remains strong.
“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,” the firm notes.
“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,” it concludes.
It remains to be seen how other smartphone and mobile device manufacturers will be effected by the coronavirus in 2020, but we think this latest earnings guidance is not the last we’ve heard from the industry.
Either way it may be hard to get your hands on a new iPhone in the coming months.[Image – Image – CC BY 2.0 Jun Seita]