Apple has confirmed the global supply of iPhones will be “temporarily constrained”, following the closure of manufacturing sites in China due to the coronavirus outbreak.
In a note to investors, the company – which makes most of its iPhone and other products in China – revealed it would miss the quarterly revenue guidance it had provided last month.
“Worldwide iPhone supply will be temporarily constrained,” Apple said.
“While our iPhone manufacturing partner sites are located outside the Hubei province — and while all of these facilities have reopened — they are ramping up more slowly than we had anticipated.
“The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues. These iPhone supply shortages will temporarily affect revenues worldwide.”
Apple also confirmed the demand for products within China has been affected by the outbreak, particularly due to all stores in China currently being closed.
“We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can,” Apple said.
“Our corporate offices and contact centers in China are open, and our online stores have remained open throughout.”
Customer demand outside of China has not been impacted by the outbreak.
Apple indicated there could be some issues coming from the coronavirus outbreak during the previous earnings call on January 28, highlighted by the unusually wide revenue range of $US63-$US67 million given as part of the forecast.
“As you can see from the range, anticipates some level of issue there. Otherwise, we would not have a $4bn range,” said company CEO Tim Cook.
Apple said it would provide more information on the situation during the next earnings call in April.
The company also announced it would be more than doubling its previously announced donation towards the global health effort.
