In a rare investor update on Monday, Apple said the global effects of the coronavirus outbreak are having have a material impact on the company bottom line. The company does not expect to meet its own revenue guidance for the second quarter due to worldwide iPhone supply being “temporarily” constrained, as well as the impact of store closures in China.
All of Apple’s iPhone manufacturing partner sites have been reopened but are “ramping up more slowly than we had anticipated,” which means that fewer iPhones than expected will be manufactured. As a result, “[t]hese iPhone supply shortages will temporarily affect revenues worldwide,” says Apple.
Regarding Apple’s retail presence in China, the company said that it is “gradually reopening our retail stores and will continue to do so as steadily and safely as we can.” The company says its corporate offices and contact centers in China are open.
In its latest earnings call at the end of January, Apple CEO Tim Cook said that Apple already had a “wider-than-usual” revenue range for the second quarter due to uncertainty around coronavirus. Still, it appears that revenue range wasn’t wide enough to account for the growing impact of the public health emergency.
Apple also said it would be doubling a previously announced donation to help with coronavirus relief efforts, though the company hasn’t put a dollar figure to that number.