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Apple says it doesn’t expect to meet revenue guidance this quarter- Full Report

Apple issues update

Apple says they now expect a slower return to normal conditions in China with demand curbed within the country.
Here is the statement:
Our quarterly guidance issued on January 28, 2020 reflected the best information available at the time as well as our best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10. Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors.
The first is that worldwide iPhone supply will be temporarily constrained. While our iPhone manufacturing partner sites are located outside the Hubei province – and while all of these facilities have reopened – they are ramping up more slowly than we had anticipated. The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues. These iPhone supply shortages will temporarily affect revenues worldwide.
The second is that demand for our products within China has been affected. All of our stores in China and many of our partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic. We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can. Our corporate offices and contact centers in China are open, and our online stores have remained open throughout.
Outside of China, customer demand across our product and service categories has been strong to date and in line with our expectations.The situation is evolving, and we will provide more information during our next earnings call in April. Apple is fundamentally strong, and this disruption to our business is only temporary.
Our first priority – now and always – is the health and safety of our employees, supply chain partners, customers and the communities in which we operate. Our profound gratitude is with those on the front lines of confronting this public health emergency.
How can three things all be your ‘first priority’? Judging by all the Foxcon reports, it’s tough to make the argument that health and safety is exactly the priority.

Apple extends coronavirus store closures in China

Apple pushes back reopening

Apple had intended to reopen stores on Feb 10 but now says it plans for Feb 13-15, according to a statement sent to Bloomberg.
The market is using Apple and Starbucks as a bit of a barometer for Chinese commerce. This really shouldn’t be a surprise, the streets in Shanghai are empty.