Apple’s Revenue Affected By Virus Outbreak

Apple’s supply chain might be affected by the ongoing coronavirus outbreak. In an update to investors, Cupertino announced that it might fall short of its target for the March quarter. It has placed blame on supply constraints and underwhelming demand in China, for the underwhelming performance.

Most of China’s workforce is gradually returning to work, albeit at a slow pace. The extensive quarantine of those in affected areas and the extended Chinese New Year holidays have contributed to this issue.

The company also says that the health and well-being of its workforce is of paramount importance to it. And as a result, Cupertino has cautiously reopened its offices and stores in the region. It chose to keep its corporate office and official stores closed till February 9th, to help prevent the spread of the virus.

As a result of this, most of its outlets have been operating at reduced hours and with relatively low customer traffic. Apple will continue to gradually reopen its stores around China and hopes to get back on track as soon as possible.

Despite the dip in demand in China, Apple’s sales in other parts of the world remain strong and in line with the company’s expectations. However, the Chinese market commands a significant chunk of Apple’s quarterly revenue, and until demand is restored, Apple’s coffers will continue to be affected.