LOGIN
REQUEST WALKTHROUGH
search
times
New call-to-action

Tags

See all

Articles

Apple Won’t Meet Revenue Guidance For March Quarter

Tumul Sinha

Tumul is an experienced Equity Analyst with ASR Wealth Advisers. She holds a Master’s Degree in Finance from the University of Sydney. Her key industry verticals include Real Estate, Health Care and Technology.

Apple Inc. (NASDAQ: AAPL) doesn’t expect to meet its second quarter revenue guidance due to work slowdowns and lower iPhone supply globally due to the outbreak of the novel coronavirus in China. The tech giant that designs, develops and sells consumer electronics initially outlined that it expected to report net sales of between $63 billion and $67 billion for the quarter, with CEO Tim Cook citing uncertainty regarding coronavirus as the reason for the unusually wide $4 billion range.

 

APPLE INC

Apple Inc. (NASDAQ: APPL) won’t meet its revenue guidance of $63 billion to $67 billion for the March quarter, citing manufacturing slowdowns, lower iPhone supply globally and Chinese store shutdowns as the primary reasons. (Credit: CNBC).

 

Apple outsources the manufacturing of many of its products, including the iPhone, to Taiwanese group Foxconn. The majority of Foxconn’s factories are located throughout China, which was at the center of the coronavirus outbreak. Consequently, there was a temporary halt to production and the closure of a number of retail stores. Apple commented that it is:

experiencing a slower return to normal conditions than we anticipated”

and expects supply shortages of the iPhone globally.

This represents the second time in only 13 months that Apple has cut its financial guidance due to concerns in China. In January 2019, Apple downgraded its revenue guidance for the first fiscal quarter of the year due to weak iPhone sales in China. However, the company expects the disruptions to only be temporary. Generally, iPhone sales have been surging, up 8% in the last three months of 2019.

Apple is currently trading for a tick under $325 per share and have rallied over 90% in the past year.


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

New call-to-action
New call-to-action

Company Articles

Looking for more Stock Recommendations?

Fill in your details to receive our special report: Top 3 Income Stock Recommendations for 2020.