Component suppliers fall following Apple announcement

Component suppliers fall following Apple announcement

Component suppliers fall following Apple announcement

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

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.

A new report from Reuters explains that Apple's share price fell by over 9 percent on Thursday after it cut its revenue forecasts for the first time in 16 years, blaming poor iPhone sales in China.

In his letter, Cook blamed the earlier launch timing of the iPhone XS and XS Max compared to the iPhone X, the strength of the USA dollar, supply constraints due to the number of new products Apple released in the fall, and overall economic weakness in some markets.

In fact, non-iPhone product revenues actually contributed to a 19-percent growth, except in China, where, according to Cook, a cooling-down economy hurt all kinds of Apple products (but still, iPhone the worst by far). Apple innovates like no other company on earth, and we are not taking our foot off the gas. The stock's decline in the fall was fueled by concerns over slowing iPhone sales after Apple reported results for the September quarter, as well as a broader sell-off by tech investors. 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.

"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", Cook said.

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The retailer also blamed a slowdown in iPhone upgrades, as well as "constrained" sales of products including Apple Watches, AirPods and iPads.

Services generated over $10.8 billion in revenue in Q1, growing to a new quarterly record in every geographic segment.

Apple has shaken the business world by lowering its sales and revenue forecast for the next quarter. Not only is there increased direct competition, but there are also now a huge number of highly capable alternatives to the iPhone available at a significantly lower price.

Apple's surprise announcement added to concerns about the ability of U.S. companies, particularly its technology giants, to navigate an increasingly uncertain economy and a continuing trade war between the United States and China.

"We believe there are other factors broadly impacting out iPhone performance, including consumers adapting to a world with fewer carrier subsidies, United States dollar strength-related price increases, and some consumers taking advantage of significantly reduced pricing for iPhone battery replacements", Cook explained.

Conversely, on November 1, 2018 CEO Tim Cook stated during Apple's fourth quarter 2018 conference call, that "o$3 ur business in China was very strong last quarter".

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