Apple says demand for iPhone’s is also down in China because many of Apple’s 42 retail stores there are closed or operating with reduced hours. China is Apple’s third-largest retail market for iPhone’s, after the US and Europe.

Apple Inc warned investors that it will not meet the financial guidelines for the second quarter due to a virus outbreak in China that has cut iPhone production.

Company based in Cupertino, California said Monday that all iPhone manufacturing facilities are located outside Hubei province, the epicenter of the outbreak, and all have been reopened. But the company said slowly lean production.

“The health and well-being of everyone who helped make this product possible is our foremost priority, and we are working in consultation with suppliers and public health experts as the road continues,” Apple said in a statement.

The death toll from COVID-19, a disease caused by a new coronavirus, was 1,770 on Monday.

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Apple said demand for the iPhone also fell in China because many of the existing 42 Apple retail stores closed or operate with reduced hours. China is the third-largest retail market Apple’s iPhone, after the US and Europe.

Outside China, Apple said the iPhone has been a strong demand and in accordance with the company’s expectations.

On January 28, Apple said it expects second-quarter revenue between $ 63 billion and $ 67 billion. Apple’s second-quarter ended March 30.

Apple said the situation develops and will provide more information about the next earnings call in April.

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