Apple issues rare earnings guidance revision, lowers forecast by $9 billion

Lift in christmas activations

It now expects revenue of $84 billion, well below the prior range of $89 billion to $94 billion that it projected in November.

Still, Mr Cook was careful to point out that smartphone sales overall in China have contracted.

Cook also acknowledged that consumers in other markets aren't buying as numerous latest iPhones, released last fall, as Apple had anticipated. The company also saw "fewer iPhone upgrades than we had anticipated", he said. This is also the fourth quarter of the year for 2018 - but, again, the first financial quarter for Apple for 2019.

The company blamed an economic downturn in China as it revealed that sales declined at the end of 2018.

A shock revenue warning from Apple has stoked fresh fears about trade tensions and spending in the world's second largest economy.

"In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad", he wrote.

Denmark train crash: Six dead after accident on bridge in 'severe storm'
The Storebaelt bridge is part of a system of bridges and a tunnel linking the the central islands of Zealand and Funen. Rescue efforts on Wednesday were being hampered by a a severe storm, with severe winds closing the crossing to cars.

While Apple's previous guidance had factored in a lot of potential headwinds that could affect revenue for the quarter, two particular points had a greater than expected impact on the company. In November, Apple unexpectedly announced that it would no longer disclose how many iPhones it ships each quarter, ending a long-running practice. It didn't have the latest and greatest specs to satisfy the hardcore Apple fanboy, but at $750, it is still a fairly expensive upgrade for consumers used to that baseline $650 for a new iPhone. This isn't unprecedented, but it might come as a bit of a shock to those investors that've seen quarter after quarter of big iPhone sales and revenue aplenty across the board for the company.

Trading in the company's shares were temporarily halted as Tim Cook, Apple's chief executive, issued a letter to shareholders explaining the reason for the change. Universal Display Corp. declined 3.5 per cent and Lumentum Holdings Inc. tumbled 8.7 per cent. Shares of US retailers that sell Apple products were also weak on the news. "The trade tensions between the United States and China put additional pressure on their economy". Along with slowed growth there in the second half of past year, Cook said that the "economic environment in China has been further impacted by rising trade tensions with the United States".

Apple Inc. plans to hold off until at least 2020 before offering an iPhone that can connect to 5G networks, according to people familiar with its plans.

.

Those difficulties are compounded by a slowing Chinese economy. Cook's letter noted that services revenue was $10.8 billion in the quarter and the business should double from 2016 to 2020. The tech-driven Nasdaq composite index now stands 18 per cent down from its record closing high reached in August.

Still, Cook pointed out that sales of several Apple products are growing, including its wearables business - devices like the Apple Watch - while the company's burgeoning services business continues to expand.

Related News:



Most liked

The Royals Just Shared Their Favorite Moments of 2018
In a final dig, Samantha added that Meghan should "eat more chocolate" to "sweeten her disposition" for the new year. However, some believe the Duchess of Sussex wants a completely different experience from her sister-in-law.

UCLA Basketball to part ways with coach Steve Alford
Kory Alford, the eldest Alford son, is in his second season as UCLA's video and analytics coordinator. Including stints at Missouri State, Iowa and New Mexico, Alford is 509-269 (.654) as a head coach.

Daryl Dragon, of ‘The Captain and Tennille,’ dead at 76
Speaking out following her ex-husband's death, Tennille described their close bond and praised her ex-hubby's incredible talent. He was a classically trained pianist but preferred to play blues and boogie music instead of Bach and Beethoven.

Wrestling Hall-of-Famer Gene Okerlund dies
Okerlund was known for his "tough questions", says the WWE, and his interviews with WWE superstars, especially Hogan. WCW was next in late 1993 before a return to the WWF at WrestleMania X-Seven in 2001.

Paul Pogba Looking To Equal Cristiano Ronaldo Record
Newcastle fans deserve more than an annual fight against relegation, but the change that needs to happen is off the pitch rather than on it.

Apple iPhone XS Max reportedly catches fire, explodes in man’s pocket
From the display to the processor to the cameras, Apple has tried to make quite a few changes to the new version of iPhone . It will comprise an eight-core CPU as compared to A12's six-core CPU which was used in Apple iPhone XS .

Netflix warns against doing 'Bird Box' meme challenge
People are even doing 24-hour challenges and documenting it all. "The only Bird Box challenge that should exist", she wrote. Netflix responded on Twitter today telling folks not to get hurt, but thanking them for their love of the movie.

Senator: Trump slowing down troop pullout from Syria
Earlier on Monday, Israeli Prime Minister Benjamin Netanyahu had reportedly urged Trump to slow down the planned withdrawal. Bolton's spokesman, Garrett Marquis, said in a statement Monday that Bolton will be joined in Turkey by Gen.

Tesla has over 3,000 Model 3s left in US inventory
Tesla has delivered over 200,000 EVs Earlier this year, Tesla reached a milestone when it delivered its 200,000th EV. The tax credit will be reduced again after June 30 2019 to $1875 and will be ended entirely at the end of 2019.

Tesla cuts prices as 4Q deliveries miss analysts' estimates
The electric-car maker's shares fell by 9.3 percent, to 301.87, in early trading. On Jan. 1 the federal credit for Tesla buyers dropped from $7,500 to $3,750.

Spoiler: WWE Title Matched Revealed For The Royal Rumble
With Lynch arguably the most popular name on the WWE roster right now, it was an excellent move to put her in a match with Cena. It confirms the realization of a fatal 5-way to determine the next challenger to the WWE Championship in Royal Rumble .

Ravichandran Ashwin in doubt for SCG Test
But so far in the Border-Gavaskar trophy Jasprit Bumrah and company have performed better than Australia's pace battery. The 30-year-old speedster hasn't had the worst of series by any stretch of the imagination.

Netflix Bows to Saudi Arabia, Pulls Episode of Hasan Minhaj Show
Netflix officials were not immediately available for comment and no statement was posted on its official corporate, Facebook or Twitter sites.

Watch Céline Dion rock out at Lady Gaga's Las Vegas show
People are living for Celine Dion living for Lady Gaga . "That is how awesome she is". "She prayed with me and my entire crew backstage before this show".

Wounded City ready to fight Liverpool, insists Kompany
The fixture will be be broadcast live on Sky Sports Main Event and Sky Sports Premier League in the United Kingdom , kick off 8pm. Liverpool go head-to-head with City, who are point further back to Spurs, tomorrow night at the Etihad (8pm).