The statement, issued February 17, reads: “Worldwide iPhone supply will be temporarily constrained. While our iPhone manufacturing partner sites are located outside the Hubei province – and while all of these facilities have reopened – they are ramping up more slowly than we had anticipated. The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues. These iPhone supply shortages will temporarily affect revenues worldwide.” That return to work refers to the enforced extension of the Chinese New Year holiday break across most industries, while Apple is also in the process of gradually reopening its retail stores.
Apple maintain that while they may take a hit this quarter, their primary concern is with, “the health and safety of our employees, supply chain partners, customers and the communities in which we operate”. The report also states that Apple has more than doubled is donation in support of the coronavirus public health effort.
Despite a potentially troublesome iPhone shortage, Apple is expected to recover in the coming months and hit yearly revenue targets.