Apple shares plunge almost 10% behind revenue warning

Image Source Marques Brownlee  Twitter

Image Source Marques Brownlee Twitter

However, the nitty gritty details in that regard will have to wait and be doled out by Apple later this year when the company gets around to announcing its fiscal first quarter 2019 earnings (which will happen on Tuesday, January 29).

Shares suffered another sharp decline the day after Apple cut its revenue forecast, blaming lackluster sales in China during the holiday quarter.

Cook claimed that the weakened demand came from China, but he noted that in "in some developed markets, iPhone upgrades also were not as strong as we thought they would be".

In fact, non-iPhone product revenues actually contributed to a 19-percent growth, except in China, where, according to Cook, a cooling-down economy hurt all kinds of Apple products (but still, iPhone the worst by far).

Apple Doesn't Understand the Real IssueApple CEO Tim Cook said that customers weren't upgrading to newer device models as quickly as the company expected.

During the first three quarters of the year, Huawei sold 145.5 million phones, versus 140.4 for Apple.

"While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China", Apple CEO Tim Cook said in a letter to investors. Sales of Apple Watch Series 4 and iPad Pro were constrained much or all of the quarter. As noted by Reuters, Hassett says that the slowing Chinese economy will affect all usa companies doing business in the country, not just Apple. -China trade tensions, but said the company won't "sit around waiting for the macro to change" in an interview with CNBC. China's economy has been pinched by the ongoing Sino-US trade war which is spilling over to other Asian economies. Others are simply taking advantage of cheap new plan for replacing iPhone batteries, which cut the price from 429 to $79.

The news caused Apple shares to plummet in after-hours trading, taking some Apple suppliers with it.

"We believe the economic environment in China has been further impacted by rising trade tensions with the United States", Cook said. Nevertheless, the relatively poor earnings performance has depressed Apple's share price by about 8% recently, and may have had a knock-on effect on other tech stocks.

Apple shares are almost 8 per cent down in afterhours trading after the iDevice and computer maker's CEO published a letter about revenue expectations from the most recent quarter.

It's too early to say whether the trade-in program will help Apple attract new users.

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