Apple cuts revenue over poor sales of iphone in China

12 January, 2019, 18:26 | Author: Regina Silva
  • Apple warns that iPhone sales could take big hit

"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.

Sevilla Officially Confirm Agreement With Barcelona Over Transfer of Munir El Haddadi
The 23-year-old leaves Barcelona after five seasons at the club, and with 12 goals in his 56 appearances for the side. But for Sevilla , while the Chelsea forward has been a player that interested them, he was not the first option.


Gwyneth Paltrow's ex-husband came along on her honeymoon
While speaking during a Cannes Lions discussion with Stephen Sakur, she said: "My children know that we're in a loving family". Gwyneth explained: 'We just took our honeymoon in the Maldives and we had a big family honeymoon over Christmas.


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.


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

Newly-discovered exoplanet twice the size of Earth could have water
Finding planets isn't as easy as sending up a satellite though, it also requires some detective work by researchers back on Earth. The brighter star is about half as massive and large as the Sun, while its companion is about one-third the Sun's mass and size.

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.

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.

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.

Not so fast: Gary Kubiak reportedly won't run Broncos' offense after all
Mike Munchak won't serve as the Broncos head coach in 2019 - but the team isn't done trying to pull him out of Pittsburgh. Rapoport believes Kubiak will remain with the Broncos; he's been a senior personnel advisor for the last two years.

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.

Eddie Murphy back for Coming to America sequel
We're nervous and skeptical about this one, but mostly we're just hyped. Murphy is producing with Kevin Misher and Barris is exec producer.

Cleveland Browns: Mike Priefer added as special teams coordinator
Priefer will replace Amos Jones, who is not coming back to the Browns after one season as special teams coordinator. According to WCCO's Mike Max, Priefer will be heading to the Cleveland Browns as special teams coach.

Hardik Pandya, KL Rahul issued showcause notice
More pertinently, the player representatives were present at the shoot of the show and did not find their comments controversial. When asked why he wouldn't ask women's names at a club, he said that he likes to 'watch and observe how they move'.