Coronavirus could cost Apple $4 billion this quarter as the firm warns of iPhone shortages

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Apple CEO Tim Cook.

• Apple could lose $4 billion in sales as the coronavirus impacts its ability to produce sufficient iPhones and AirPods.
• In a Monday press release, the firm warned that it expected to take a revenue hit due to the novel coronavirus outbreak in China.
• Wuhan, in China, is thought to be the epicenter of the virus. The virus has so far 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.
• Analysts say Apple's facilities in China have reopened 'more slowly than expected'.
• Visit Business Insider's homepage for more stories.

Apple could lose $4 billion in sales as the coronavirus threatens to severely impact the company's supply chains in China, according to analysts.

Apple warned on Monday that it did not expect to hit its March revenue targets due to the coronavirus known as COVID-19. The virus, which is believed to have originated at a wet market in Wuhan, the capital of the Hubei province of China, has killed more than 1,700 and infected more than 71,000.

In a statement issued on Monday, 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.

According to analysts at Instinet, an independent broker based in New York, a slowdown in iPhone and AirPod production could see sales drop from $65 billion to around $61 billion. Jeff Kvaal, managing director, said: "Apple indicated all of its facilities are outside of Hubei province and have reopened... [but] more slowly than expected."

The majority of coronavirus 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.

According to the New York Times, 42 Apple stores in China had closed and only seven have reopened. The company said that it would 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 a 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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