Apple warns that the coronavirus is expected to weaken revenue due to store closures in China and impacted iPhone production

tim cook

  • In a Monday press release, Apple warned that it expected to take a revenue hit due to the novel coronavirus outbreak in China.
  • It offered two explanations: slowed production of iPhones due to the novel coronavirus, and the closure of Apple stores in China during the outbreak.
  • The epicenter of the virus is thought to be Wuhan, China. Thus far, the virus has infected more than 71,000, and killed more than 1,700. The majority of the cases are concentrated in China, but it has spread to more than 25 other countries.
  • Apple is not the only country to be impacted by the novel coronavirus: some in the auto industry have seen their supply chains interrupted, and other tech companies like Facebook have also been impacted.
  • Visit Business Insider's homepage for more stories.

Apple warned on Monday that it did not expect to hit its March revenue targets due to the novel coronavirus named COVID-19.

The virus, which is thought to have originated at a wet market in Wuhan, China, has killed more than 1,700 and infected more than 71,000.

The majority of the cases have been in China: more than 16 cities have been on lockdown, impacting nearly 50 million people, attractions and stores have been shuttered, and the Lunar New Year holiday was extended to stem the spread of the coronavirus.

In a Monday press release, Apple said, "we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors." The first, Apple noted, was slowed iPhone production due to the virus, and the second was slowed Chinese demand.

"Our quarterly guidance issued on January 28, 2020 reflected the best information available at the time as well as our best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10," Apple said in its release. However, the company noted that the return to work has been slower than expected, impacting the supply of iPhones.

Additionally, 42 Apple stores in China had closed and only seven have reopened, The New York Times noted.

The company said that it will continue to monitor the situation, saying that the health and well-being of those impacted by the coronavirus was the company's primary focus.

While the announcement made by Apple was unusual, the company is not alone in being impacted by the coronavirus. China is the site of one quarter of the world's manufacturing, and the auto industry along with other tech companies like Facebook are dealing with disruptions to their supply chains.

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