Apple CEO Tim Cook
Apple issued a rare earnings warning on Monday, saying it would not meet quarterly revenue expectations due to the impact of the coronavirus, which will limit iPhone production and limit product demand in China.
Why it matters: Lots of companies rely on China for production, but unlike most U.S. tech companies, Apple also gets a significant chunk of its revenue from sales in China.
Details: The company said in a statement that it expects slower revenue due to a combination of slower iPhone production in China and lower demand for Apple products within China.
- "Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter."
- Apple had already given a wider range of guidance for the quarter, citing uncertainty over the virus' impact on both demand and production.
Apple stressed it sees the impact as temporary: "Outside of China, customer demand across our product and service categories has been strong to date and in line with our expectations."