Supply of Apple iPhones constrained because of coronavirus outbreak, revenue expected to drop
The outbreak of the coronavirus continues to affect many, with Apple now warning that global supply for iPhones will be in shortage. Apple has pledged to aid public health efforts by doubling its donations but with the issues faced, the company expects the shortage to affect its global revenue.
According to Apple's press release, the company's factories have reopened but production volume isn't ramping up very fast. Besides that, the demand for iPhones was affected. The virus outbreak made it necessary for Apple to close or reduce operating hours for its offices, stores and partner stores in China. This caused productivity to drop and fewer customers coming into stores, which resulted in lower sales.
So, if you are suddenly told that there's no iPhone 11 left when you visit an Apple Malaysia store, you can blame the shortage. Apple expects the situation to gradually improve as it continues to ramp up production and reopen stores. But the reasons above do mean that the company's revenue will take a hit this quarter, and would not reach the target initially announced to investors.
However, Apple is right to be cautious as long as coronavirus remains a threat. Hopefully, the shortage can be resolved soon so as to not affect supply for the upcoming iPhone 9 or 12. With that said, is there an iPhone model that you're looking forward to? Let us know on our Facebook page and stay tuned to TechNave.com for more news.