Apple Inc AAPL.O shares plunged 10 percent on Thursday after the iPhone maker blamed weak China demand for a holiday-quarter revenue shortfall, with many investors anxious the rare stumble was a harbinger for slowing global growth.
The U.S. tech giant Apple saw its stock price plunging more than 9 percent in early trading on Thursday after the company issued lower guidance for fiscal 2019 first quarter.
Apple on Wednesday lowered its revenue forecast to $84 billion for its first quarter ended December 29, below analysts' estimate of $88.05 billion. Apple originally forecast revenue of between $89 billion and $93 billion.
Cook attributed the primary drop in revenue to challenges in emerging key markets - mainly China - and a waning in the sales of iPhones. Miner Teck Resources Ltd. B shares lost more than six per cent on copper dipping below the $2.60 threshold on concerns about China. The news comes as USA earnings season looms around the corner.
Some Chinese netizens and companies have also turned against Apple. He added that overall, "consumption growth" is slowing down across China.
With Apple's slumping stock taking a lot of the market down with it, the White House seemingly felt compelled to chime in on the matter.
CEO Tim Cook said in a letter to shareholders Wednesday that demand for iPhones is waning and revenue for the last quarter of 2018 will fall well below projections, a decrease he traced mainly to China.
China's economy grew at its weakest pace since the financial crisis last quarter as its trade war with the U.S. added uncertainty to an already rocky environment. Amid Apple's problems in China, the Dow fell more than 300 points in early trading on Thursday. Apple shares were down 8.8 percent at $143.97.
That spells trouble for companies that rely on China's enormous market to boost their global sales.
"Don't forget this: Apple makes their product in China", Trump said. He didn't mention that Apple had priced its new models at stratospheric levels.
Japanese shares tumbled and Shanghai's benchmark climbed Friday as Asian markets steadied following a technology-led sell-off on Wall Street. Nevertheless, CFRA Research analyst Angelo Zino noted that the trade-ins are available only through Apple Stores, while most iPhones are sold through wireless carriers.
Making high-end iPhones locally may shave a few hundred dollars off pricesin India, where the cheapest XS costs $1,430 and the average annual wage is about $2,000, but making real headway will require Apple to offer a much cheaper product.
I'm a long-time fan of Apple but my trusty 2013 MacBook Pro and iPhone 6s Plus work just fine.