Apple cuts revenue over poor sales of iphone in China

12 January, 2019, 18:26 | Author: Regina Silva
  • Apple cuts revenue over poor sales of iphone in China

"While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China", Tim Cook, the chief executive at Apple, said in a letter to investors.

China's "economy began to slow there for the second half", Cook said during an interview with CNBC on Wednesday afternoon.

To help boost iPhone sales, Cook said Apple will expand its financing plans and build upon its recent efforts to make it easier to trade in older models at its stores.

In his letter to investors, Cook touted continued traction in Apple's "non-iPhone businesses", including wearable devices and supplementary services, like iCloud, Apple Pay and the App Store. This year was no different, the rumors and rumblings of weak iPhone sales still came and we've all been waiting for Apple's reaction.

Apple now expects revenue for the three months ending in December to be about $84 billion, down from an earlier estimated range of between $89 billion and $93 billion. The company also saw "fewer iPhone upgrades than we had anticipated", he said.

Cook largely blamed macroeconomic factors for the company's woes but Apple may have also hit a price wall with its consumers, at least when it comes to phones.

Apple finds itself in a tricky position in China, a key market for sales and where it manufactures the bulk of the iconic products it sells worldwide, after the high-profile arrest in Canada of the CFO of domestic rival Huawei Technologies Co Ltd.

All this has meant that Apple's market share in the world's fastest growing economy has gone below 1%. Asian suppliers' stocks also fell, as did shares of Samsung.

Moscow's Court Receives Appeal Against Suspected Spy Whelan's Arrest
The date of its consideration is not fixed yet, as the complaint needs to be translated into Whelan's native language. A 2007 online Marine Corps article says he spent the leave "experiencing the post-Soviet era of Moscow and St.


The Breakdown EP80: Gloucester V Munster preview & Conor Murray address injury rumours
Munster travel to Gloucester this weekend to face the English Premiership side in a crucial Pool 2, Round 5 Champions Cup clash. However, if you would like to, you can change your cookie settings at any time by amending your browser settings.


Tesla to retire these versions of Model S, X vehicles
Tesla broke ground on Monday in Shanghai on its first factory outside the United States. Tesla did not respond to a request for comment.


iPhones are some of the most compact smartphones on the market.

In November, Cook cited slowing growth in emerging markets such as Brazil, India and Russian Federation for lower-than-anticipated sales estimates for the company's fiscal first quarter.

"We believe the economic environment in China has been further impacted by rising trade tensions with the United States", Cook added.

Apple has held firm on its premium pricing strategy in China despite the risk of a slower economy, a factor that has been exacerbated by the strong USA dollar.

China is not only the problem for Apple.

SAN FRANCISCO-Apple acknowledged that demand for iPhones is waning, confirming investor fears that the company's most profitable product has lost some of its luster.

The stark acknowledgment from the premier US tech company is sending reverberations throughout global markets and even led Citi to ask an existential question: "What if China Sales Went to Zero?" "This turned out to have a significantly greater impact than we had projected", Cook said in the letter.

Recommended:



Popular

Barcelona could sell Philippe Coutinho in order to bring Neymar back
It has been just over one year since Philippe Coutinho arrived at Barcelona from Liverpool for 120 million euros, plus another 40 million in variables, making him the club's most expensive signing.

Manny Pacquiao's translator goes on X-rated rant against Adrien Broner
Fernandez kept on telling Pacquiao not to forget to duck and weave past Broner as soon as he throws a combination. Pacquiao looked good in his brief in-ring workout Wednesday, pounding Roach's ribcage while working the mitts.

Langer in tense exchange with reporter amid Maxwell questions
While he is still a part of the Australian ODI team but he has been constantly overlooked for Test selection. After two rounds of this, Langer was asked who gave the directive to which he replied: "Did it happen?".

Longtime NHL star Rick Nash retires due to concussions
The concussion, however, short circuited a deal that both sides were excited about making. Nash, 34, finishes his career with 437 goals and 368 assists in 1,060 games.

World number one Simona Halep stunned in Sydney
The 2011 US Open victor took the first set 7-5 but lost the next two 6-4, 6-3 to crash out in the second round. Highlighting the win was the fact Barty had failed to take a set off Halep in their two previous meetings.

What to know about Tim Tebow's finacee, Demi-Leigh Nel-Peters
The couple's inner circle then had dinner at a Jacksonville club, while family and friends made speeches and toasts. Tebow shared a photo of himself getting down on one knee to ask Nel-Peters the big question.

Megyn Kelly & NBC Reach Exit Deal 3 Months After Blackface Controversy
Critics accused her of ignoring the ugly history of minstrel shows and movies in which whites applied blackface to mock blacks. She is expected to receive the remaining money left on her contract, which is reportedly in the neighborhood of $30 million.

Behind LaMarcus Aldridge’s career-best 56, Spurs outlast Thunder in 2OT
San Antonio's DeMar DeRozan had a chance to win the game at the end of the fourth quarter but missed a short jumper at the buzzer. Aldridge scored eight consecutive points with Adams out, but consecutive 3-pointers by Terrance Ferguson tied it again at 126.

Paris: Several injured in explosion near bakery
Police have quickly ruled out any terror link or link to the ongoing yellow vest protests planned for the city later on Saturday. A loud explosion has been reported in central Paris , police have said, with pictures showing severe damage to a building.

Repetitive Radio Burst From Distant Galaxy, Detected By Scientists in Okanagan Valley
CHIME reconstructs the image of the overhead sky by processing the radio signals recorded by over a thousand antennas. But, from whatever little data exists, most scientists do not believe that FRBs are attempts by aliens to contact us.