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Apple says iPhone sales will take hit, due to coronavirus


Apple said Monday that the coronavirus is affecting the company more than previously thought and is having an impact on manufacturing.

The company lowered its guidance for earnings in the current quarter.

“We are experiencing a slower return to normal conditions than we had anticipated,” Apple said in a statement. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter.”

Daniel Ives, an analyst with Wedbush Securities, says the Apple announcement “just confirmed some of the worst fears on Wall Street.”

The iPhones are assembled in China, and factories located outside the Hubei province “are ramping up more slowly than we had anticipated,” Apple said. The shortages will “temporarily” affect revenues worldwide.  

Additionally, Apple’s been hit with sales issues in China. 

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The Apple retail stores there are closed, and the retail stores that are open “have been operating at reduced hours and with very low customer traffic.” Apple said it is gradually reopening its retail stores and will continue to do so “as steadily and safely as we can.”





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