Apple cautioned it does not expect to meet its quarterly revenue forecast, citing slowed production and weakened demand in China as a result of the coronavirus outbreak. The most valuable company in the U.S. initially said it expected to report net sales between $63 billion to $67 billion in its fiscal second quarter.
The company has not provided an updated forecast for its fiscal second-quarter revenue on Monday. Shares of Apple traded 2.2% lower in the premarket.
The revenue warning appeared to dent market sentiment, as investors continue to assess the potential economic fallout of China’s fast-spreading coronavirus.
“While this is disappointing, by now we don’t believe it’s surprising, and we still expect the issues to be transitory,” said Chris Caso, an analyst at Raymond James, in a note. “We think almost all of the production and most of the demand is likely to be recaptured once Apple’s manufacturing partners are able to return to full production, and once retail facilities in China return to normal.”