Apple (AAPL - Free Report) announced that it doesn’t expect to meet its previous revenue guidance. This update came only a few weeks after the iPhone giant provided its Q2 fiscal 2020 outlook and highlights Wall Street’s growing coronavirus worries.
Apple released a statement Monday night that said “we do not expect to meet the revenue guidance we provided for the March quarter.” The company pointed to coronavirus-based setbacks as the reason it will likely fall short of its Q2 2020 sales guidance of between $63 billion to $67 billion, which it provided when it wowed Wall Street with its first quarter results at the end of January.
Apple said that the deadly coronavirushas disrupted iPhone production in China and negatively impacted demand in the key Chinese market. Apple noted that “iPhone supply shortages will temporarily affect revenues worldwide.” The company also said that “all of our stores in China and many of our partner stores have been closed.”
Apple is, however, gradually reopening its retail stores and will do so “as steadily and safely” as possible. Meanwhile, the company reassured investors that customer demand has remained strong outside of China.
AAPL shares slipped nearly 2% during regular trading Tuesday, which helped send the Dow and the S&P 500 down on the day. Now Wall Street will watch closely to see what company might be next to lower their guidance on coronavirus fears.
Apple stock is still up 50% in the last six months to outpace Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) , Google (GOOGL - Free Report) , and other tech giants.
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