Apple prepares from for virus fallout. Photograph:( Reuters )
The iPhone maker says its supply of smartphones would be hampered because production was slower than expected.
Apple said on Monday that it will not be able to meet revenue estimates for the March quarter due to the coronavirus outbreak in China, making it the first major US company to admit the impact of the virus.
The iPhone maker says its supply of smartphones would be hampered as production was slower than expected.
The company had forecast $63 billion to $67 billion in revenue for the quarter ending in March. Apple makes most of its iPhones and other products in China.
The outbreak temporarily halted production and also closed all retail stores in the country.
While all iPhone factories located outside of the Hubei province, which is the centre of the outbreak, have reopened, Apple has said that they are "ramping up slower than expected".
Some Apple retail stores also reopened in China with reduced hours last week. This comes at a time when sales of iPhones were up for the first time in a year.
It spells bad news for China which is the world's biggest market for smartphones. Analysts estimate that this coronavirus could slash the demand for smartphones by almost half in the first quarter of this year.