Apple (NASDAQ:AAPL) shares fell hard on Tuesday, a day after the iPhone maker warned that it does not expect to meet its own guidance for the March quarter because of the impact from the coronavirus.
The outbreak of the virus, which has killed over 1,800 people, also led to China’s New Year holiday being extended and factories and retail stores being shut for a longer period of time.
Apple said Monday there was "a slower return to normal conditions than we had anticipated" pointing to issues around its supply and demand.
The U.S. technology giant has large exposure to China, with around 15% of revenue coming from the region and most of its products, including the lucrative iPhone, being made there.
Apple said all its manufacturing facilities have reopened in China but are, quote, "ramping up more slowly than we had anticipated" leading to "iPhone supply shortages."
Barclays expects March quarter iPhone shipments to come in at 40.8 million versus its previous forecast of 44 million. The bank has reduced its June outlook from 36 million units to 33.8 million. It also cut its price target for Apple’s stock from $304 to $297.
In terms of revenue, JPMorgan said it expects Apple to report revenue of $60 billion in the March quarter and earnings per share of $2.70 versus its previous estimate of $3.02.
In its fiscal first-quarter earnings release last month, Apple had given wider-than-usual revenue guidance of $63 billion to $67 billion because of the uncertainty surrounding the coronavirus. However, Apple’s didn’t give revised guidance in its latest warning.
Shares stumbled $6.91, or 2.1%, to $318.04
