Apple supplier Qorvo lowers guidance due to COVID-19

Apple supplier Qorvo, maker of iPhone radio frequency chips, lowered its Q4 guidance to $770 million on Tuesday due to the coronavirus outbreak. The company had predicted revenue of $800 million to $840 million on January 29th.

Apple supplier Qorvo lowers guidance. Image: COVID-19Jessica Bursztynsky for CNBC:

“The novel coronavirus (COVID-19) has impacted the smartphone supply chain and customer demand more than anticipated,” Qorvo said. “The full impact of COVID-19 remains difficult to forecast given the uncertainty of the magnitude, duration and geographic reach of the outbreak,” according to a press release. Qorvo is expected to announce Q4 results on May 5, 2020.

Apple is expected to announce a new low-cost iPhone sometime this spring, possibly named the iPhone SE2. It typically announces its new flagship iPhones in September.

On Tuesday, Hon Hai precision, which builds Apple’s iPhones, said that production has reached 50% of seasonal required capacity and that, based on its current schedule, it expects to reach “full seasonal capacity by the end of March.”

MacDailyNews Take: After Apple’s warning, it’s only natural that iPhone suppliers like Qorvo will have to lower guidance, too.

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