Apple Forecasts Weak 1Q Sales Due to COVID-19 Impact

Revision of Q1 Earnings Guidance Announced on 28th Last Month
Decrease in Demand and Supply Disruptions in China Due to COVID-19 Cited as Reasons
Revised Forecast Figures Not Disclosed

[Asia Economy New York=Correspondent Baek Jong-min] Apple has announced that its first-quarter earnings are expected to fall short of expectations due to the impact of COVID-19.

Employees at the Apple Store in Beijing are working while wearing masks. The store had closed due to the impact of COVID-19 but recently reopened. [Image source=AP Yonhap News]

On the 17th (local time), Apple suddenly revised its first-quarter earnings guidance. It stated that first-quarter results would fall short of the company's previously projected estimates due to iPhone supply shortages and weak demand within China.

Earlier, on the 28th of last month, Apple had announced its fourth-quarter results and forecasted first-quarter sales of $63 billion to $67 billion. The newly released guidance did not specify the expected sales amount. However, it only reminded that a significant decline is anticipated.

Apple explained that although they tried to provide accurate information during the previous earnings announcement, the rapid spread of COVID-19 forced them to issue a revised guidance.

Apple manufactures most of its iPhones in China. Due to COVID-19, Apple's manufacturing partner factories in China halted operations, logistics were disrupted, and Apple Stores in China were closed, spreading the impact further.

Some Apple Stores have reopened and all iPhone manufacturing facilities have resumed operations, but the company expects it will take considerable time before normal manufacturing and sales can be restored.

Apple stated that recovery is significantly slower than expected and suggested that a global iPhone supply shortage could occur.

CNBC reported that the release of the low-cost iPhone model, which was expected this spring, could also be delayed due to the impact of COVID-19.

This content was produced with the assistance of AI translation services.