Attempts by the Chinese government to contain the spread of the coronavirus have prevented iPhone factories in the country from resuming operations completely, says Apple.
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This story originally appeared on PCMag
The coronavirus outbreak has “temporarily restricted” the iPhone supply chain in China , which has been the most affected by the disease. As a result, Apple expects to lose sales around 63 billion and 67 billion dollars that it plans to raise in this quarter.
“The shortage of iPhone supplies will temporarily affect worldwide revenues,” the company said in a note.
The good news is that Apple's iPhone factories in China are located outside Hubei province, which is the zero zone for the outbreak. However, attempts by the Chinese government to contain the spread of the coronavirus have prevented workers and shipments from flowing freely throughout the country. “While all these facilities have been reopened, they are increasing more slowly than we had anticipated,” Apple added.
Apple issued this announcement to its investors days after Nvidia decreased production and demand for the company's graphics cards in China. “While it is still early and the final effect is difficult to estimate, we have reduced our first quarter revenue outlook by $ 100 million to take into account the potential impact,” said Nvidia's chief financial officer, Colette Kress, the week. pass.
In fact, the ongoing outbreak, which has affected more than 70,000 people in China, is forcing many suppliers of electronic products, including Nintendo and Sony, to warn of possible business disruptions.
The IDC research firm for the Chinese local market. Sales of PCs, smartphones and tablets in the country are expected to fall 30 percent this quarter.
But despite the outbreak, an analyst, Ming-Chi Kuo, expects Apple to go ahead and present a new low-cost iPhone and a new iPad Pro during the first half of this year.