Apple shares drop after news of waning iPhone sales

Apple shares drop after news of waning iPhone sales

Any new product offering from Apple is unlikely to be revealed before September, when the company traditionally unveils its new iPhones.

The news sent Apple shares tumbling in after-hours trade and triggered a broader selloff in the stock market. The revenue revision, which came late Wednesday, led markets lower around the world and also triggered a slump for Asian suppliers and a wave of lower price targets from Wall Street.

Cook blamed the lowered forecast on several different factors, including the timing of its latest generation iPhone launches, a strong USA dollar creating foreign exchange headwinds, supply constraints, and economic weakness in some emerging markets.

Apple claimed a number of reasons why it knew revenue would underperform, citing a slowing economy in China, supply constraints, the build of buyers having upgraded to the iPhone X in January 2018 rather than December 2017 and more, but they were themselves surprised by how rapidly the smartphone market in China collapsed, saying "market data has shown that the contraction in Greater China's smartphone market has been particularly sharp". US stocks have tumbled over the last three months as investors anxious that the economy might slow down dramatically because of a variety of challenges including the trade dispute and rising interest rates.

Cook said the new iPhone models were released earlier than the flagship iPhone X last year, which created a hard year-over-year comparison.

Timing of the iPhone launches. China's economy has been pinched by the ongoing Sino-US trade war which is spilling over to other Asian economies. As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed.

World Anti-Doping Agency accused of being 'played' by Russian Federation
A woman walks into the head office of the World Anti-Doping Agency (WADA) in Montreal, Quebec, Canada November 9, 2015. They added that anything less "will be considered a failure by WADA to act on behalf of clean athletes".

Many analysts and investors had anxious about a slowdown in iPhone sales since the company said in November it would stop disclosing unit sales data for its phones and other hardware products.

"It's not going to be just Apple", CEA chairman Kevin Hassett said in an interview on CNN.

Stock markets jumped Friday as investors welcomed news of trade talks between the USA and China next week and the US government reported a big increase in hiring in December. Plus, he doesn't think the Apple decline is a push back to trade tensions. Mid-level officials from the Trump administration are scheduled to travel to Beijing for talks early next week. Apple estimated that it would make $91 billion over the last quarter, but has since revised this to $84 billion in revenue, with a gross margin of 38 percent.

KitGuru Says: I still like both the iPhone and the iPad but Apple's price increases over the last few years have been taking a toll.

Apple's decision to cut its sales outlook, "isn't a huge shock at this point", said Shannon Cross of Cross Research. When the suspension on selling was lifted, Apple shares fell 7.45%.

Related Articles

  • Swedish hospital on lockdown after report of suspected Ebola case

    Swedish hospital on lockdown after report of suspected Ebola case

    It did not confirm the person definitely had the Ebola virus and said " other diseases are quite possible ". The largest outbreak was one in 2013-2016 in West Africa, where more than 28,000 cases were confirmed.
    Edgerrin James A Hall Of Fame Finalist For Third Time

    Edgerrin James A Hall Of Fame Finalist For Third Time

    Lynch played free safety for the Tampa Bay Buccaneers from 1993 until 2003 and then for the Denver Broncos from 2004 until 2007. The Hall of Fame announced today that former safety Ed Reed is a finalist for the 2019 class.
    Emotional Andy Murray unsure over career longevity after winning return

    Emotional Andy Murray unsure over career longevity after winning return

    He has been replaced in the draw by lucky loser Taro Daniel of Japan, who will play Jo-Wilfried Tsonga on Thursday. The Australian Open, the first Grand Slam of the New Year, begins on January 14.
  • Kim Kardashian expecting baby No. 4 via surrogate

    Kim Kardashian expecting baby No. 4 via surrogate

    Of course, whenever West or his wife (or any of the Kardashians, for that matter) do anything, people have an opinion on it. And on Friday, Kim Kardashian took to her Instagram page to share a snap of herself straddling husband Kanye West .
    NASA reveals images of distant 'Snowman' shaped Ultima Thule

    NASA reveals images of distant 'Snowman' shaped Ultima Thule

    Ultima Thule , a celestial object, formed of two spheres, around 21-miles tall, photographed by Nasa's New Horizons spacecraft. Critically, it should also have sufficient electrical reserves to keep operating its instruments into the 2030s.
    Are Nikki Bella and Artem Chigvintsev of 'Dancing with the Stars' Dating?

    Are Nikki Bella and Artem Chigvintsev of 'Dancing with the Stars' Dating?

    It's interesting to note that this information has been released as we gear up for a new season of Total Bellas . I'm enjoying being single, but I'm not really living up to the perks of a single life, ' she added.
  • What's Going On With Apple

    What's Going On With Apple

    Services generated $10.8 billion in revenue for the quarter - a 27 percent increase from a year earlier. The iPhone X launched in November 2017, while the iPhone XS and XS Max were released in September.
    Dutch islanders take to the beach as container cargo washes ashore

    Dutch islanders take to the beach as container cargo washes ashore

    Authorities have warned volunteers and locals not to touch any bags but to call police or the fire brigade. MSC is also deploying specialised ships equipped with sonar to search for missing cargo at sea.
    Rashida Tlaib's New Office Map: Israel Renamed 'Palestine'

    Rashida Tlaib's New Office Map: Israel Renamed 'Palestine'

    Tlaib also penned an op-ed Thursday arguing that "the time for impeachment proceedings is now". Jon Levine, media editor for The Wrap, posted the video on Twitter .
  • Sarri wants new Chelsea striker

    Sarri wants new Chelsea striker

    Olivier Giroud is now sidelined with an ankle injury and Sarri admits Chelsea's lack of options up top are costing his side. United States worldwide Pulisic will return to Dortmund on loan before completing his move to Chelsea in the close-season.
    Thigh strain forces Nadal out of Brisbane tournament

    Thigh strain forces Nadal out of Brisbane tournament

    Nadal, who claimed his 17th Grand Slam title at Roland Garros a year ago , has not played a competitive match since September. Nadal played in an exhibition in Mubadala last week, losing to Kevin Anderson before withdrawing.
    We’re Picking Winners For NFL Wild Card Weekend

    We’re Picking Winners For NFL Wild Card Weekend

    With 9/4 odds, the Saints are the odds-on favorites to win the Super Bowl, followed by the Kansas City Chiefs at 4/1. Behind the Chiefs in the AFC are the New England Patriots , who finished the season with the No. 2 seed at 11-5.