- iPhone China sales took a hit due to the deadly Coronavirus outbreak, Apple itself admitted in an investor note a few days ago.
- UBS analyst estimate, iPhone sales decreased 28% during January’s latest investor note today.
According to Bloomberg, Apple Inc.’s China iPhone sales dropped due to Coronavirus, mentioned in a Government survey for the month of January. According to a UBS research note citing official Chinese data, the demand for the iPhone has been dropped 28% as compared with the previous few months, which is an unusual decline.
A far-sighted UBS analyst, Timothy Arcuri wrote in a statement that “February numbers are likely to be far worse due to both supply and demand issues related to the virus outbreak,”
Also, according to Apple revenue forecast for the March quarter, saying the virus had stunned sales and slowed down production and the iPhone sales in China dropped unusually.
The overall situation is so bad that Apple hasn’t still published a fresh revenue forecast, Arcuri said. The pace of recovery in the company’s June quarter “is more dependent on the demand side – which is very hard to predict,” the analyst added.
The China Academy of Information and Communications Technology claimed that the overall January smartphone shipments in China slumped 37% year over year. While UBS’s Arcuri said that iPhone sales increased 5% in January due to the online purchasing on eCommerce web stores as compared to the previous holidays (which was marred by a trade war tensions).
However, the overall situation in China is still uncertain due to the uncontrollable Coronavirus. Arcuri explained that Apple has to find new ways of generating a reasonable revenue for fiscal.
“The situation is so fluid that Apple hasn’t given a new revenue forecast, Arcuri said. The pace of recovery in the company’s June quarter “is more dependent on the demand side — which is very hard to predict,” the analyst added.”
Bloomberg also reports today that the company has closed 42 outlets/stores in mainland China due to the deadly virus outbreak a few weeks ago. However, the stores started to reopen and as of right now, 29 of Apple’s 42 locations in China are open, the report says.
You can read Apple’s full note to investors here.