Apple adjusts due to coronavirus to keep next-gen iPhones on track

Apple is course correcting for the COVID-19 coronavirus in order to keep next-gen iPhones and other products on track.

Apple on Monday announced to investors that the COVID-19 coronavirus outbreak has slowed its supply chain and impacted sales worldwide. Subsequently, the company will miss the second fiscal quarter revenue guidance given in January of “between $63 billion and $67 billion.” Apple said their revenue warning was based on constrained supply due to less manufacturing facility production and also lower sales across China due to closed retail stores. In their statement, Apple did not provide new revenue guidance for Q220.

Don Reisinger for Fortune:

With no sign of supply chain problems letting up, Apple has started to shift some AirPods, iPad, and Apple Watch production from China to Taiwan, Taiwan News reported this week. Apple’s China-based partners won’t be able to resume full capacity production until March, according to the report. Apple has therefore decided to move as much production as possible to Taiwan, where restrictions on work and supply chain effects are minimal…

Despite its coronavirus woes, Apple is showing no signs of changing the rollout plans for its new products later this year. A budget-friendly iPhone 9 is still on track for a March release… The company is also said to be working on a new iPad Pro that’s on track for a first-half of 2020 launch… Apple is still working on flagship phones for this fall, and those devices, which might launch with iPhone 12 branding, are also on schedule… Apple’s long-awaited AirTag product trackers will be released this year, TF International Securities analyst Ming-Chi Kuo told investors this week.

MacDailyNews Take: It’s only prudent that Apple moves some production from China to Taiwan in order to diversify production and keep next-gen iPhones and other products on track. It’s never good to be so reliant on one country.

According to the latest figures from Caixin, there have been 76,395 confirmed cases in China, with 20,659 recovered, 4,365 suspected cases, and 2,348 deaths due to the COVID-19 coronavirus outbreak. Confirmed cases outside of China total 1,537 with 14 deaths in 28 countries.