iPhone supply to be “temporarily constrained” due to Coronavirus

Apple won't meet the revenue guidance for Q2 2020.
iPhone at Home Screen

Apple has confirmed that the Chinese Coronavirus outbreak will limit iPhone production and distribution on a worldwide scale.

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The company has shared that production is “starting to resume,” but at a slower pace than anticipated.

Because of this, Apple does “not expect to meet the revenue guidance we provided for the March quarter,” which was initially fixed at $63-$67 billion for its Q2 2020.

“Work is starting to resume around [China], but we are experiencing a slower return to normal conditions than we had anticipated,” the Cupertino giant told CNET. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter.”

“Worldwide iPhone supply will be temporarily constrained,” they added. “While our iPhone manufacturing partner sites are located outside the Hubei province–and while all of these facilities have reopened–they are ramping up more slowly than we had anticipated.”

Coronavirus is having an impact on gaming, too. A Bloomberg report claims that Nintendo Switch will face shortages in all territories in April.

PlayStation 5’s production cost is said to be higher because of costly parts, instead, while the production itself should be safe as next-gen consoles launch during Holiday 2020.


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