Amid The Coronavirus Outbreak, Apple’s Q2 Revenue Forecast Likely To Take A Hit

As per a report by IDC, it highlighted that Apple dominated the premium segment in the Indian smartphone market in Q42019. Apple has reached a record 75.6 percent market share in Q4 2019 in the premium (US$500) segment. As of now, Apple has warned that it is likely to fall short of its revenue goals in the second quarter. This is majorly because of the outbreak of the Coronavirus outbreak in China, which had halted the production of iPhones.

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According to an investor update that was published recently, Apple had mentioned that while the work has started to resume around the country, Apple is experiencing a ‘slower return’ to normal conditions.

The press release said that while the iPhone manufacturing partner sites are located outside the Hubei province, and while all facilities have reopened, they are ramping up slowly than Apple had anticipated. Due to this, there would be iPhone supply shortages, that is likely to affect revenues worldwide.

Also, Apple states that the demand for its products have also taken a hit within China, as many Apple stores and partners stores have shut down in China. The press release mentioned that the situation is evolving and that they would provide more information during the next earnings call in April. They even stressed that Apple is fundamentally strong, and this disruption to the business is temporary.

Earlier, Apple had forecasted a revenue range between $63 billion to $67 billion for its second fiscal quarter. However, Apple hasn’t provided a new forecast for its second-quarter revenue. 

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  • Fractioncalc

    Several thousands were already infected and the death toll is rising to unprecedented level. I really wonder how many lives will be lost before the vaccines is created.