Earlier this month we learned that Apple would be temporarily closing its stores in China due to the coronavirus outbreak, joining other American companies like Nike and Starbucks. Following initial reports suggesting Apple would still be able to meet its quarterly earnings goals, it now looks like that may not be the case.
The Cupertino-based company issued a rare warning this week after originally foreseeing returns of $63 billion to $67 billion for this quarter. While it has yet to announce the expected loss, Apple shares have fallen 2.3 percent. Additionally, companies responsible for supplying Apple with chips are taking a hit as well, as stock prices for Qorvo, Skyworks, Lam Research, and Broadcom have fallen anywhere from 1.2 percent to four percent.
Apple is warning of an impending iPhone shortage because of coronavirus. The company has revealed that while its factories in China have reopened, iPhone production is moving slower than expected. Furthermore, while some Apple retail stores in the country have reopened, a portion of third party retailers remain closed and others are operating on reduced business hours.
Amid expected losses for this quarter, Apple foresees a full recovery in the coming months to achieve its yearly goals.