Apple cuts Q2 revenue guidance, citing coronavirus in China
Updated: Feb 25, 2020
On Monday, Apple updated investors with new guidance for the second quarter of 2020, saying the company will fall below the March revenue projections it provided previously.
Apple had forecast revenue for its fiscal second quarter between $63 billion and $67 billion but now says that it will not meet the lower-end of that range due to the effects of the coronavirus in China.
The investor update cited two primary reasons for the falling revenue: worldwide constraints for iPhone supply, and demand for Apple products within China. Apple says that manufacturing in China has restarted, but with slower than anticipated levels of production.
While demand for Apple products has dropped in China, Apple told investors that demand for products and services have been "strong to date and in line with our expectations," according to the announcement.
Apple did not provide a new forecast for second-quarter revenue.
Weak demand for Apple products is not new territory for Apple, however. In January of 2019, Apple cut its first-quarter revenue guidance due to concerns in China, citing weak iPhone sales.
Read the full press release here.