Qorvo, a radio frequency chip supplier for Apple’s iPhone, lowered fourth-quarter revenue expectations to $ 770 million on Tuesday. The company forecast revenue of $ 800 million to $ 840 million on January 29th.
“The new coronavirus (COVID-19) has had an impact on the smartphone supply chain and customer demand more than expected,” said Qorvo. “The full impact of COVID-19 remains difficult to predict given the uncertainty of the extent, duration and geographic scope of the epidemic,” according to a press release. Qorvo is expected to report 4th quarter results on May 5, 2020.
Apple is expected to announce a new low-cost iPhone by spring, possibly called the iPhone SE2. Typically announces its new flagship iPhones in September.
In mid-February, Apple said it did not expect to meet its quarterly revenue forecast due to lower global iPhone supply and weak Chinese demand. 15% of its revenue comes from the region. Previously, Apple had forecast net sales of between $ 63 billion and $ 67 billion for the second fiscal quarter, although it did not provide a new forecast.
On February 28, Apple CEO Tim Cook said he believed China is controlling the coronavirus. “When we look at the parts being made in China, we reopened the factories, so the factories are working through the conditions to open up. They are reopening,” he said.
On Tuesday, the accuracy of Hon Hai, who builds the Apple iPhone, said that production has reached 50% of the seasonal capacity required and that, according to its current schedule, plans to reach “full seasonal capacity by the end. in March. ” But Hon Hai warned that “there are still many [of] uncertainties that we cannot quantify on the potential impact [of] for the whole year. ”
Qorvo is the last of the technology companies to suffer from the deadly impact of the coronavirus that has made at least 91,300 people sick.
PC makers have also indicated that this cycle will be affected by the coronavirus. Last week, HP warned during its first quarter revenue tax phone call that production constraints could delay corporate computer updates to the second half of 2020. Lenovo also warned that supplies would be limited in the first quarter.
Microsoft, which relies on Windows sales to those computer manufacturers, said its more personal customization unit would miss the segment guide during the third fiscal quarter, noting that “Windows OEM and Surface have a more negative impact than previously expected.
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