Apple on Monday announced that it will miss its forecasted revenue guidance for the second fiscal quarter of 2020 due to the coronavirus epidemic. The company had projected revenue for the quarter between $63 and $67 billion, and gross margin between 38 and 39 percent. Apple did not provide revised Q2 earnings estimates.
In a released statement, Apple stated that it is, “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 due to two main factors.”
In a statement, Apple said it expected the iPhone supply constraint to be temporary. Demand for Apple products in China has been affected as well, with Apple stores closed for a duration, and then reopening at a reduced schedule.
“Outside of China, customer demand across our product and service categories has been strong to date and in line with our expectations,” Apple said in the statement. In a note to employees obtained by Bloomberg News, CEO Tim Cook echoes the company’s statement and assured worker that “Our first priority—now and always—is the health and safety of our employees, supply chain partners, customers, and the communities in which we operate.”
Apple closed its Q1 2020 with a record $91.8 billion in revenue, with iPhone sales up 7 percent over the previous holiday quarter. Its second quarter closes March 30, with results likely due in early April.