Apple Supplier Qorvo Cuts Guidance Due to the Coronavirus
Apple (NASDAQ: AAPL) supplier Qorvo (NASDAQ: QRVO), which makes radio frequency chips for the iPhone, is the latest to issue an investor warning for the current quarter due to the coronavirus.
The chipmaker had expected revenue to come in between $800 million and $840 million for the March quarter but reduced that guidance to $770 million. Qorvo said the novel coronavirus outbreak has impacted the smartphone supply chain and customers' demand more than expected. The tech company also warned the full impact of the virus "remains difficult" to forecast.
Qorvo's ultrawideband wireless technology, which it acquired through its acquisition of Decawave, is used in the iPhone 11 for its AirDrop capability. Qorvo's chips are expected to be in the lower-cost iPhone that Apple is rumored to be launching this spring. With the cheaper iPhone, Apple is going after a market that wants the processing power without all the bells and whistles. It's not clear if the warning out of Qorvo will have any impact on the launch date for that device known now as the iPhone SE2.
Source Fool.com
