Apple Inc said on Monday that it will not meet its revenue guidance for the March quarter due to the coronavirus outbreak affecting both production and demand in China.

Apple's quarterly guidance issued on January 28, 2020 reflected the best information available at the time as well the company's estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10. The company had forecast $63 billion to $67 billion in revenue for the quarter ending in March, ahead of estimates of $62.4 billion.

Although work is starting to resume around the country, Apple says it is experiencing a slower return to normal conditions than the company had anticipated. As a result, Apple does not expect to meet the revenue guidance it provided for the March quarter due to two main factors.

The first is that worldwide iPhone supply will be temporarily constrained. While Apple's iPhone manufacturing partner sites are located outside the Hubei province — and while all of these facilities have reopened — they are ramping up more slowly than Apple had anticipated. Apple says these iPhone supply shortages will temporarily affect the company's revenues worldwide.

The second is that demand for Apple's products within China has been affected. All of Apple's stores in China and many of its partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic. "We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can. Our corporate offices and contact centers in China are open, and our online stores have remained open throughout," Apple said.

The situation is evolving, so Apple will provide more information during the company's next earnings call in April.

Apple may also miss its schedule for mass producing a more affordable iPhone that it had planned to release this spring, the Nikkei Asian Review reported.

Mass production of the model was expected to start by the end of February, but it could now be delayed until sometime in March, the Nikkei reported, citing sources.

Apple declined to comment on the report.