Coronavirus: Apple predicts falling short of 2020 Q2 revenue projection
- Apple has indicated that the coronavirus may affect its revenue projections for the second quarter of 2020
- In the first quarter, the company reported a revenue level of $91.8 billion
- Manufacturing and sales of Apple products have been affected by the spread of the virus and could reduce quarterly revenue to between $63 and $67 billion
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Apple Inc has expressed fears about its probable inability to meet its revenue target for the second quarter of the year 2020.
Information available shows that it set its estimated quarterly revenue between $63 and $67 billion.
However, the coronavirus, which has been prevalent in China since December 2020, has reportedly affected Apple’s business dealings in the country.
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YEN.com.gh earlier reported that Apple reported a revenue level of $91.8 billion in the first quarter.
Per a report by venturebeat.com, the company has warned investors that manufacturing of iPhones and overall Apple sales in China will be affected.
It added that its own as well as “partner retail locations in China have been either closed or operating in limited fashion, including “very low customer traffic.”
Apple’s chief executive officer, Tim Cook, and chief finance officer, Luca Maestri, have described the upcoming quarter’s expected revenue range as unusually wide to take the coronavirus’ potential impact into account, but hinted that the health situation might have deeper impacts.
In other news, some investors have described Ghana’s economy as one to watch in the year 2020, given recent indicators.
Information available shows that in 2019, investors regarded the country’s economy as a slow one, with creeping inflation and a declining currency that has dueled with the dollar for 25 straight years.
However, everything changed in the year 2020 as the cedi is now regarded as the best-performing currency in the world.
Per a report by Bloomberg, investors are currently in a rush to buy into the nation’s $3 billion Eurobond issue and foreigners are gaining interest in its local-currency debt.
Reports say investors who expressed fears about election-related spending are now praising the government's fiscal prudence and financial reforms.
This was reflected in the sale of the Eurobond two weeks ago when orders were placed for almost five times the original amount.
This led to a fall in the yield well below the initial price target and with the first local-currency bond sale of the year on January 16, 2020, foreign investors bought more than 80% of the 1.4 billion cedis ($258.3 million) of securities, compared with average holdings of 37% over the past two years.
Again, the positive outlook has been credited to reforms started by Ghana three years ago. These included outlawing large deficits and an aggressive banking-sector overhaul that cut the number of lenders by a third to 23, lowering liquidity and credit risks.
READ ALSO: Apple loses $27 million after delaying the opening of its Chinese factories
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Source: YEN.com.gh
