The company had forecast $63 billion to $67 billion USA in revenue for the quarter ending in March, ahead of estimates of $62.4 billion.
Apple said Monday its revenue for the current quarter would be below its forecasts, and that worldwide iPhone supply "will be temporarily constrained" because of the global virus outbreak, notably in China, where Apple manufactures most of its devices.
The iPhone maker previously predicted sales of $63 billion to $67 billion from January through March, its fiscal second quarter.
We've been hearing for some time that Apple plans to launch a new low-priced iPhone based on the iPhone 8, but with updated internal components.
Apple is still reportedly planning to release a low-priced iPhone next month despite supply chain setbacks caused by the coronavirus outbreak, according to Bloomberg. Glencore CEO Ivan Glasenberg maintained that it's "a bit too early" to nail down the impact, but noted that China has effectively taken two extra weeks after the Lunar New Year holiday to get back up and running.
Another factor denting revenues is that "demand for our products in China has been affected".
Apple's contract factories inside China, meanwhile, have added far more locations than outside, with Foxconn alone expanding from 19 locations in 2015 to 29 in 2019 and Pegatron going from eight to 12, according to Apple's data. For now we know that if the next iPhone is thin, it will be using Apple's own modems and if it's thick, it will be using Qualcomm's modem. According to Reuters, China accounted for 15 percent of the company's revenue last quarter, and 18 percent in the March quarter, i.e. this time a year ago. The outlet goes on to say that the iPhone SE 2 will be available buy just a few days later, on April 3.
Our paramount concern is with the people who make up Apple's community of employees, partners, customers, and suppliers in China.
The move was enough to send USA equity prices to record highs last week, but the warning from Apple and the subsequent sell-off in the US futures indexes indicates that the damage could be significant if China cannot gain control of the virus.
Outside China, Apple said iPhone demand had been strong and was in line with the company's expectations.
'We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can'.