Apple says iPhone supplies hit; here is big reason why

Coronavirus impact: Apple has become the first US company to admit that its finances will be hit due to spread of coronavirus. The tech giant on Monday said that it is set to miss the revenue forecast for the March quarter and iPhone supplies worldwide would also be impacted, underlining the economic cost of the health crisis. The virus has sparked global economic jitters, travel bans and the cancellation of high-profile sporting and cultural events.

"We are experiencing a slower return to normal conditions than we had anticipated," Apple said in a statement. "As a result, we do not expect to meet the revenue guidance we provided for the March quarter," it added. Apple had forecast revenue of $63 billion to $67 billion for the second quarter to March.

The company said that iPhone supplies would be "temporarily constrained" as its manufacturing partners in China were only slowly ramping up work after being closed due to the virus. Many Apple stores in Chinese markets were shut due to the outbreak as well.

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"Stores that are (now) open have been operating at reduced hours and with very low customer traffic," the company said. "We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can."

The COVID-19 virus death toll now exceeds 1,800 in China, where it has infected more than 72,000 after emerging in the central province of Hubei in December.

Apart from Apple, supply chains of Foxconn and auto giant Toyota have been disrupted as key production facilities in China were temporarily closed, and some major airlines have halted services. Brands like Nike and Adidas had shuttered hundreds of stores in the country earlier this month and warned of a negative impact on their earnings.