Jan. 3, 2019
Apple CEO Tim Cook, in a letter to shareholders, warned that fiscal first-quarter revenue would fall short of previous estimates, and an economic slowdown in China and ongoing trade tensions with the U.S. have impacted demand for the iPhone and other products.
Cook said the company previously knew that the quarter would be impacted by macroeconomic and Apple-specific factors, in part due a strong U.S. dollar, supply constraint issues and due to the timing of top iPhone X and iPhone Xs model shipments in the fourth quarter.
However, he said economic weakness in China and other emerging markets and rising trade tensions helped lead to a sharp reduction in smartphone demand in that country and traffic to its retail stores and channel partners declined.
The company now expects to report revenue of about $84 billion, down from the prior guidance of $89 billion to $93 billion.
Apple shares were down more than 8 percent to $144.80 in late morning trading.
Topics: Financial News, Mobile/Digital Wallet, Region: APAC
Companies: Apple
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