Tech Giant Apple is concerned with the dip in sales due to the Coronavirus attack in China. The company shared in a statement that ‘slow return to normal condition is already experienced’ from the market. Since China holds one of the biggest markets of the iPhone, the virus has affected store hours. Sale of the Apple products has dropped due to a reduction in store time or stores being closed due to lack of manpower. Though most manufacturing partners are located outside Hubei province, Apple said ‘they are ramping slower than the expected rate’.
Market analysts are forecasting a further drop in iPhone demand due to the corona pandemic. The magnitude of the impact will make Apple miss revenue guidance through mid-February. Though the registered case of virus attack outside its epicentre area is decreasing, it will take time to bring back the workforce to the factories and stores.
The company experts have forecasted a drop in Global stock. The iPhone supply on a global basis has been constrained due to the epidemic. Though the situation is slowly being controlled, a lasting effect will be experienced in the mid-season revenue of Apple Inc.