Apple To Fall Short Of Revenue Projections
Apple is the heavily reliant both on Chinese manufacturing, but also Chinese consumers. The company had originally projected reaching revenue levels between $63 billion and $67 billion. However, 10-day closures of factories and stores throughout the country have made it difficult to keep up with production demands.
The revenue projections relied on steady sales of iPhones throughout China as well. Last year, Apple was able to reach $44 billion in sales throughout Greater China.
Essentially, companies around the world are struggling to maintain production as key parts manufactured in China are not streaming in as the country deals with the outbreak of the coronavirus. Fiat Chrysler and Volkswagen have stalled production for this very reason. China relies on manufacturing as one of the major props of its economy. Manufacturing made up 30% of China’s GDP last year.
2 major factories that Apple relies on to manufacture its products are based in Wuhan. There are plans to potentially shift production demands from those two factories, to other open factories.
“We factored our best thinking in the guidance that we provided you,” Tim Cook, CEO of Apple, said.