The Tech Giant Apple has warned that disruption in China from the coronavirus will mean revenues falling short of forecasts.
BBC reported that Tech Giant Apple said production and sales affected, and that “worldwide iPhone supply will be temporarily constrained”.
Apple, which had forecast record revenues of up to $67bn in the current quarter, did not reveal the likely hit.
“We do not expect to meet the revenue guidance we provided for the March quarter,” the company said in a statement,
“Experiencing a slower return to normal conditions” than expected, it added.
With most stores in China either closed or operating at reduced hours, sales of Apple products would be lower, the company said.
Apple said that “while our iPhone manufacturing partner sites are located outside the Hubei province –
While all of these facilities have reopened – they ramping up more slowly than we had anticipated.
“All of our stores in China and many of our partner stores closed,” it added.
“Additionally, stores that are open have been operating at reduced hours and with very low customer traffic.
We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can.”
Analysts have estimated that the virus may slash demand for smartphones by half in the first quarter in China.
The car industry another sector that has been affected by disruption to its supply chain.
Last week, the heavy equipment manufacturer JCB said it was cutting production in the UK because of a shortage of components from China.
Oil Prices Slip
On the other hand, Oil prices look to cuts nagging concerns over the economic impact of the coronavirus outbreak in China and its effect on oil demand, tracking losses in financial markets.
Reuters reported that Oil prices look to cuts on drawing concerns over economic impact of the coronavirus outbreak in China and its effect on oil demand, tracking losses in financial markets.
Brent crude LCOc1 was at $57.30 a barrel, down 37 cents, or 0.6%, by 0126 GMT, while U.S. West Texas Intermediate crude CLc1 fell 15 cents, or 0.3%, to $51.90 a barrel.
The number of new coronavirus infections in mainland China fell below 2,000 on Tuesday for the first time since January, Chinese health officials said, although global experts warn it is too early to say the outbreak is being contained.