The development on the Novel Coronavirus of 2019, now more commonly known as COVID-19, is on every headline for the past month or so. If you have not heard, the Mobile World Congress 2020 (MWC2020) that is supposed to open its doors soon was shut down due to the large health concerns. They are not alone though. The F1 GP to be held in China in about two months time has been cancelled via the request of the local organisers. If you missed our news, Acer’s Predator League 2020 set to happen at the end of this month is also cancelled due to health concerns.
All these are quite expected, to be fair. What is even worse is that plenty of factories in China had to close down or stop operating for the time being thanks to the vicious spread of the virus. One of those affected manufacturing plants are Apple’s contractor, Foxconn. That also means there is currently a global shortage of Apple iPhones. Of course, that is going to hit the market and Apple’s earnings a little bit.
For good measure, for their investors anyway, Apple just predicted that their Q2 revenue will be lower than the expected US$ 63 to 67 billion. If you are thinking that it cannot be that much lower for Apple to make an announcement like this, it looks quite bad from Apple’s side. Their prediction also says that they will not even make the lowest mark of the revenue estimates for Q2 of 2020.
At this time Apple is predicting up to a 36% difference between the expected shipment for Q2 2020 and the actual shipment number. Optimistically they are expecting a 29% difference. Still, that big of a difference in shipments is going to be quite a big hit to their revenue numbers.
Apple did not mention how big of an impact the plunge in shipment will make though. At this time we cannot comment too much into their reduced shipments or even predict how much they will lose in revenue for Q2 2020. To be fair, even our attention is mostly fixed on the development on COVID-19.
Sources: 9to5 Mac, Mac Rumors, Mashable
