Due to the outbreak of the coronavirus (COVID-19) in China, Apple announced to investors that it does not expect to meet the revenue estimate for the second fiscal quarter By 2020, the company reported through a statement. The initial projection was between 63,000 and 67,000 million dollars, however, they now believe that it will not be possible to reach even the lower amount mentioned above.
Our quarterly guide issued on January 28, 2020 reflected the best information available at that time, as well as our best estimates on the resumption of work after the end of the extended holiday of the Chinese New Year on February 10. Work is beginning 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 guide we provide for the March quarter.
According to Apple, there are two main causes that will not allow them to achieve their economic objective. First, the each in the iPhone production since the coronavirus began to expand in China. This will obviously generate a limited global supply. And is that several factories, including Foxconn, were forced to suspend their operations temporarily to avoid further contagion. In fact, Cupertino's are not the only ones affected by the situation.
The other has to do with the low demand for Apple products in the Asian country, since most official stores have had to close as a precaution. Although some stores continued with their activities, they had to shorten their schedule to adapt to the regulations issued by the authorities. Despite the above, the flow of customers has been quite slow in recent weeks.
All of our stores in China and many of our associated stores have been closed. In addition, stores that are open have been operating at reduced hours and with very little customer traffic. We are gradually reopening our retail stores and will continue to do so as consistently and safely as possible.
With regard to the situation outside of China, those led by Tim Cook say that demand for services and products remains "strong" and in line with their expectations. They have reassured investors that it is a temporary inconvenience, also making it clear that the health and safety of their employees is a primary issue. For this reason, they mentioned, they will double their donation to support the health sector's fight against the coronavirus.
MS in Hypertext