A masked man is cycling past a closed Apple store in Beijing (photo by AFP)
Apple Inc. is warning investors that it won’t meet its expected second-quarter revenue between $63 billion and $67 billion because of the viral outbreak in China, leading to a cut in iPhone production. The tech giant is the first major US company to say that the epidemic will hit its finances.
According to Apple, while their iPhone manufacturing partner sites are located outside the Hubei Province, they are ramping up more slowly than anticipated. With most stores in China either closed or operating at reduced hours with very low customer traffic, sales of Apple products would also be lower, the company added.
“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 emphasized in a statement.
Apparently, tech companies are not the only industry affected by disruption to the 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.
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