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Expect sales to fall short of new coronavirus

Apple announced on February 17 a so-called profit warning, informing investors and others that sales could not reach guidance due to the effects of the new coronavirus. This is the first year in a year since January 2, 2019.

Forecast for the first quarter of 2020 [October-December, 2019] announced at the end of January, the next financial result, that is, sales of $ 63-67 billion in the second quarter of 2020 [January-March 2020] Was. This guidance has also been factored into the effects of the new coronavirus and has been given some flexibility, but it has become definitive to break below the lower limit.

利益 In the previous profit warning, the sluggish iPhone was the main cause. Apple has grown double-digit sales since the launch of the iPhone X in 2017, driven by significant increases in device selling prices. The pace of growth has been reset as core products, which accounted for 60-70% of the business, struggled more than expected.

However, after Q3 2019, the company was once again hitting record-high sales. The service sector's rapid growth has been maintained, while wearables have continued to grow at 50% per annum, helping to offset the decline in the iPhone and generate more revenue for Apple.

未 Regarding sales shortfall in the second quarter of 2020, Apple pointed out in a press release:

  1. Decline in demand in China
  2. Global shortage of iPhone

In both cases, the new coronavirus limits economic activity in China. After the extended Lunar New Year holiday, general business is starting again on February 10, and Apple has said that its commissioned factories are starting to operate.

However, efforts to spread the infection are still ongoing, and Apple has not been able to resume directly managed stores in many cities, except for the resumption of the Apple Store in Beijing on February 14. The same is true for sales partners and carriers, so Apple's sales in China are ending.

Furthermore, because the production capacity in China has not recovered as expected, iPhone production has been delayed, leading to a global supply shortage. In other words, the lack of iPhones in countries other than China will result in lost opportunities.

Apple is said to have planned a new low-priced iPhone in March 2020, but this has to be postponed. According to IDC, the Chinese smartphone market was down 7.5% in 2019, but expects to fall by more than 30% due to the new coronavirus in the future.

Apple forecasts sales to fall short: new pneumonia affects iPhone production, etc. [2/18]
The Chinese smartphone market will decline 7.5% in 2019, but will fall by more than 30% due to the impact of new viruses in the future-According to IDC [2/18]
Is the influence of the new coronavirus on the new low-priced iPhone? [2/19]

Consider changing iOS default app

Apple has fixed the standard web browser and email app for iPhone and iPad to its own Safari and Mail. But this policy may change.

According to iOS 14, which is expected to be announced in September 2020, these standard apps will be able to be changed to user and corporate preferences. In other words, if you use the new mail function, you will open Gmail instead of Apple Mail, or tap the link in the message to launch Chrome.

Third-party apps have been used on iOS. The aforementioned Gmail was popular because of the large number of users in the first place, and Chrome is also a staple. Microsoft's Outlook has gained some support not only for corporate use but also for its integrated management of email and calendar.

However, because it could not be set as the default application, it was troublesome to use the share function to open it with the application you wanted to use. iOS 14 could improve that.

MacIn addition, Mac has a function to change the standard browser and mail application.

Apple considers a feature that allows iOS to use the default browser and email for other products [2/21]


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