Coronavirus Affects Apple Revenue, Causes iPhone Supply Shortages

According to Apple, the ongoing coronavirus outbreak is affecting its business more than previously expected as it limits how many devices it can make and sell in China. “Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” the company said.

CNN reported that much of Apple's manufacturing operations are based in China, and nearly half of the country's population are living under some form of travel restrictions. “The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues,” Apple said. “These iPhone supply shortages will temporarily affect revenues worldwide.”

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Apple (AAPL) temporarily closed all its stores in China. Other major international companies have also closed offices and factories due to the deadly virus. While some are starting to reopen, the situation is still far from the usual in terms of business.

In a CNBC report, Apple initially said that it expected to report net sales between $63 billion to $67 billion in its fiscal second quarter. The company did not provide a new forecast for its fiscal second-quarter revenue on Monday.