The Limited Times

Now you can see non-English news...

Corona virus tilts Apple's sales forecast

2020-02-17T22:20:43.238Z


A few weeks ago, Apple had expected turbulence from the new corona virus - but nevertheless promised a significant increase in sales. However, the forecast cannot be kept.


A few weeks ago, Apple had expected turbulence from the new corona virus - but nevertheless promised a significant increase in sales. However, the forecast cannot be kept.

Cupertino (dpa) - Apple cashes the sales forecast for the current quarter due to the economic consequences of the coronavirus epidemic. There are supply bottlenecks for iPhones because production in China is ramping up more slowly than planned, the company said.

In addition, sales of Apple devices in China had recently been subdued, as many stores - and the company's own stores - remained temporarily closed.

For these reasons, Apple will miss the sales forecast for this quarter made only at the end of January. Apple had already given an unusually wide range of $ 63 billion to $ 67 billion with reference to the coronavirus risks. There was no new forecast now. The restrictions on the business are only temporary, the group emphasized. Apple had $ 58 billion in revenue in the prior-year quarter.

The factories of Apple manufacturers such as Foxconn and Pegatron as well as the most important suppliers are located outside the province of Hubei, which was particularly affected by the outbreak of the lung disease Covid-19. In China, however, the traditional Chinese New Year holidays were extended elsewhere to avoid spreading. All production plants were running again. But: "The iPhone supply bottlenecks will temporarily affect sales worldwide."

The situation is in flux - and more information on the effects on Apple business should only be available with the figures for the current quarter in April.

Apple had already warned of impairments to production in January. Some suppliers are located in the particularly affected region around the city of Wuhan. But there are alternative sources for their products, said CEO Tim Cook at the time. At the same time, he also admitted that development in other parts of the production chain is difficult to predict.

By Monday, around 1,770 people in China had died of Covid-19. Experts assume that the number of cases is high.

Source: merkur

All news articles on 2020-02-17

You may like

Trends 24h

News/Politics 2024-03-27T16:45:54.081Z
News/Politics 2024-03-28T06:04:53.137Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.