On Tuesday, owing to the holiday season in China, Apple reported high sales and profits this quarter above Wall Street’s expectations. This came after disruptions in virus-hit China that the iPhone sales have increased for the first time in a year with soaring demand for other add-ons like AirPods.
However, despite the performance, Apple is more concerned about the virus outbreak in a country, as it is a major market and manufacturing hub for Apple. This quarter, they have also observed a slight revenue miss in the services segment including the new Apple TV+ streaming offering. In the after trade, Apple’s shares rose by 2%. They also forecasted revenue above Wall Street expectations for the quarter that ends in March.
Tim Cook, Chief Executive at Apple, said that they have used a very wider-than-normal prediction due to uncertainties around the virus. He further said that they have limited the business travel for all the critical situations last week. They are still closely monitoring the growing situation and gathering data points.
As the company has suppliers in the Wuhan area, they have decided the factories outside the area will not reopen until Feb. 10. Apple has built the delay into restart for a wider revenue. The company has also shut one store and reduced work hours at others. They have taken similar actions for third-party stores that sell their products.
The company is forecasting stronger growth in Q2 in comparison to the prediction buy analysts despite the unpredictable spread of coronavirus in China said Yoram Wurmser, an eMarketer principal analyst.