Apple says will not meet revenue guidance for March quarter due to coronavirus impact

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Apple says will not meet revenue guidance for March quarter due to coronavirus impact

 

FILE PHOTO: The Apple Inc. logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo

 

(Reuters) - Apple Inc <AAPL.O> said on Monday that it will not meet its revenue guidance for the March quarter due to the coronavirus outbreak affecting both production and demand in China.

 

The company said that despite the fact that its productions facilities in China have re-opened, they are ramping up slower than expected.

 

The company had forecast $63 billion to $67 billion in revenue for the quarter ending in March, ahead of estimates of $62.4 billion.

 

Apple said that supply for its iPhones will be "temporarily constrained" as manufacturing facilities in China are still not operating at full capacity. Sales of iPhones were up for the first time in a year in the December quarter.

 

It also said that store disruptions have affected its sales in China, with most stores either closed or operating at reduced hours.

 

The outbreak is expected to pile pressure on China's economy with companies struggling to restart production after an extended new year holiday as supply chains from the car industry to smartphones remain disrupted.

 

Analysts have estimated that the virus may slash demand for smartphones by half in the first quarter in China, the world's biggest market for smartphones.

 

(Reporting by Neha Malara in Bengaluru; Editing by Sonya Hepinstall)

 

-- © Copyright Reuters 2020-02-18

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[bkk6060]

Pent up demand then later in the year sales will be huge.

I own the stock but not the phone. Never got why or could justify the cost.

It seems like one of those ridiculous "look at me" purchases. Especially here paying more then one months salary for a phone. Like getting a drink at Starbuck's and posting it on Facebook. Wow, great congratulations you have truly made it.

 

[Cryingdick]

9 minutes ago, bkk6060 said:

Pent up demand then later in the year sales will be huge.

I own the stock but not the phone. Never got why or could justify the cost.

It seems like one of those ridiculous "look at me" purchases. Especially here paying more then one months salary for a phone. Like getting a drink at Starbuck's and posting it on Facebook. Wow, great congratulations you have truly made it.

 

 

I also own the stock which has been on a rocket like surge. The good news is the stock needed to rest a little and this is that chance. This was sort of already known so maybe the hit won't be too bad. Good chance for those that missed the ship to get on board if there is a pull back. Apple still has a massive war chest in their buyback program as well.

 

Just a bump in the road really.

[zydeco]

2 hours ago, bkk6060 said:

Pent up demand then later in the year sales will be huge.

Do you think that following up on a devastating epidemic in which factories close, people lost family members, work, and salary that the first thing they will want to do is buy a new overpriced phone? I don't. But don't worry, I'm sure your stock price is safe. The crook in charge of Apple will just order more stock buybacks to keep his bubble shares inflated.

[Cryingdick]

1 minute ago, zydeco said:

Do you think that following up on a devastating epidemic in which factories close, people lost family members, work, and salary that the first thing they will want to do is buy a new overpriced phone? I don't. But don't worry, I'm sure your stock price is safe. The crook in charge of Apple will just order more stock buybacks to keep his bubble shares inflated.

 

It doesn't matter what you or I think. This particular article is about a company and it's supply channel. This affects consumers, governments, first responders, medical professionals, and many people. The smart phone is no longer a toy it's a commodity.

 

The stock market doesn't care what we think because it is always right according to its own rules which are always subject to relentless changes. To discuss it's intricacies in a thread like this shows no malice, callousness, or  indifference to those that have been impacted by the virus. 

 

So don't be Debbie Downer when people discuss strategies surrounding the stock. Some of us have enough in it that it can actually be a life changing decision for better or worse what happens to Apple. If 20% of all your future worth it tied up into Apple you might understand.

 

There are threads for the victims in which you can leave kind words. 

 

Calling Tim Cook a crook is just sad, fraudulent, nonsense. Watch he handles this and how he will steer the ship. As a CEO, human rights activist, role model, and a man that is accorded the highest degree of respect in whatever country he goes goes to he is one of the greatest of all time. Hate on Steve Jobs all you want but Cook isn't what you are making him out to be.

 

He will school everybody else on how to shift production and deal with these things. He isn't responsible for the corona virus he is simply trying to ship 100 million phones each quarter. Cook would make a great cabinet member in any administration because of his vast knowledge of global supply and demand, his diplomacy he can deal with the Chinese and Trump at the same time and did it perfectly, and his particular acute sense of the world around him.

[Ventenio]

THIS is why you must support Apple and pay retail price for their phones!!  40,000, OK!!  I will support companies who struggle and have mouths to feed and mortgages to pay...

 

Oh, what?  There are suicide nets outside Foxxcom where they build these phones marked up by 800% so Apple execs can make billions while the slaves suffer???  Oh, they make 100000 zillion a year and charge 3000 baht for some proprietary adapter and another 5000 baht if I want them to look at my battery?

 

oh.  OK, I will not lose sleep over missing revenue guidance.  

[Cryingdick]

 

.

Edited February 18, 2020 by Cryingdick
just not worth explaining.

[zydeco]

2 hours ago, Cryingdick said:

Calling Tim Cook a crook is just sad, fraudulent, nonsense. Watch he handles this and how he will steer the ship. As a CEO, human rights activist, role model, and a man that is accorded the highest degree of respect in whatever country he goes goes to he is one of the greatest of all time. Hate on Steve Jobs all you want but Cook isn't what you are making him out to be.

About your hero, Tim the crook, Ricky Gervais said it best. "[Apple] "rolled into the TV game with a superb drama about the importance of dignity and doing the right thing, made by a company that runs sweatshops in China." and accordingly, "It's a reference to Apple's partnership with the Chinese manufacturing company Foxconn, which assembles the iPhone. Both Apple and Foxconn have been found to have violated Chinese labor laws and used illegal student labor to build the iPhone."

 https://www.businessinsider.com/golden-globes-ricky-gervais-roasted-apple-as-tim-cook-watched-2020-1

 

That's your hero, who you justify because you want to see your stock price go up. Sickening!

Edited February 18, 2020 by zydeco

[Dap]

9 hours ago, Cryingdick said:

 

It doesn't matter what you or I think. This particular article is about a company and it's supply channel. This affects consumers, governments, first responders, medical professionals, and many people. The smart phone is no longer a toy it's a commodity.

 

The stock market doesn't care what we think because it is always right according to its own rules which are always subject to relentless changes. To discuss it's intricacies in a thread like this shows no malice, callousness, or  indifference to those that have been impacted by the virus. 

 

So don't be Debbie Downer when people discuss strategies surrounding the stock. Some of us have enough in it that it can actually be a life changing decision for better or worse what happens to Apple. If 20% of all your future worth it tied up into Apple you might understand.

 

There are threads for the victims in which you can leave kind words. 

 

Calling Tim Cook a crook is just sad, fraudulent, nonsense. Watch he handles this and how he will steer the ship. As a CEO, human rights activist, role model, and a man that is accorded the highest degree of respect in whatever country he goes goes to he is one of the greatest of all time. Hate on Steve Jobs all you want but Cook isn't what you are making him out to be.

 

He will school everybody else on how to shift production and deal with these things. He isn't responsible for the corona virus he is simply trying to ship 100 million phones each quarter. Cook would make a great cabinet member in any administration because of his vast knowledge of global supply and demand, his diplomacy he can deal with the Chinese and Trump at the same time and did it perfectly, and his particular acute sense of the world around him.

Twenty percent of your future huh? You might consider greater diversification if that's the case and if you are so reliant on how apple does.

Seems a fairly weak portfolio. 

[Iron Tongue]

Apple isn't a "bubble stock", as my investments in Apple have split 11-times over decades.  They sell a real product in a competitive global market.

 

Having worked and lived in Silicon Valley my entire life, I have encountered plenty of trash-talkers, but they typically either afraid, missed the boat, cannot afford the product, or don't understand the economics of technology.

[PatOngo]

Fear not! Countless Thai's will go into debt to purchase the product and bolster stocks!

[cheshiremusicman]

On 2/18/2020 at 6:31 AM, bkk6060 said:

Pent up demand then later in the year sales will be huge.

I own the stock but not the phone. Never got why or could justify the cost.

It seems like one of those ridiculous "look at me" purchases. Especially here paying more then one months salary for a phone. Like getting a drink at Starbuck's and posting it on Facebook. Wow, great congratulations you have truly made it.

 

Yes, same feeling myself. I personally don't need to be looking at my emails and Facebook pages (i don't have an account and don't want one) as I go about my daily life. Ridiculous price, for what I consider to be a 'grownups dummy'. I am quite happy, just having a phone. I do understand, that some people need to have a 'Smartphone' for their business, but most people seem to have them to look at trivia all day. I certainly won't be crying that Apple products are slow to come out of China. 

[zydeco]

Apple stock being vaporized.

[zydeco]

The Apple bubble has popped! Pshewwwwww.