China Takes Wind Out Of Apple iPhone Sales

China Takes Wind Out Of Apple iPhone Sales

Apple on Wednesday took the rare step of cutting its quarterly sales forecast, with Chief Executive Tim Cook blaming slowing iPhone sales in China, whose economy has been dragged down by uncertainty around US-China trade relations.

As Apple for the longest time didn't manufacture the iPhone in India, it also couldn't reep tax benefits in India and it has been unable to open Apple stores in the country due to laws that pertain to sourcing local components.

Cook lowered the company's revenue guidance for the three months that ended December 29, to about $84 billion from as much as $93 billion.

Meng Wanzhou, who is also the daughter of the company's founder, Ren Zhengfei, was detained in Vancouver on December 1 on a United States extradition request linked to sanctions-breaking business dealings with Iran. It was the first time since June 2002 that Apple issued a reduction in its quarterly revenue forecast.

Mr Cook also acknowledged that consumers in other markets are not buying as numerous latest iPhones, released last fall, as Apple had anticipated. The company also expects a gross margin of approximately 38 per cent and other expenses to sit around $550 million approximately.

The company is expected to report results for the fiscal first quarter of 2019 after market close on January 29.

Apple ended Wednesday's session with a share price of $157.92, which was already a 30% decline from an all-time high of $227.63 on August 27.

Several injured in 'serious' bus crash near Westboro station
Two of the dead were riding the bus; one was on the platform at Westboro station, a major stop on the city's busway, he said. Ontario Premier Doug Ford said he was devastated to hear of those who were killed and injured in the bus collision.

iPhones are some of the most compact smartphones on the market.

Mr Cook said Apple's revenue for the quarter including the crucial holiday shopping season will fall well below Apple's earlier projections and those of analysts, whose estimates sway the stock market.

"We believe the economic environment in China has been further impacted by rising trade tensions with the United States", he added.

China is not only the problem for Apple.

The tech company's troubles send a message for companies doing business in China, or suppliers with customers that do business in China, that the effects of trade tensions and a slowing economy are rippling to consumers, curbing demand and spending.

The stark acknowledgment from the premier USA tech company is sending reverberations throughout global markets and even led Citi to ask an existential question: "What if China Sales Went to Zero?" This has some investors anxious that Apple's flagship device has lost its mojo.

"We would anticipate the company increasing share buybacks on the weakness to return capital to shareholders at discount prices", said Trip Miller, managing partner at Apple shareholder Gullane Capital Partners.

Related News:

  • Labor urges government to offer Saudi woman asylum in Australia

    Labor urges government to offer Saudi woman asylum in Australia

    She was reportedly taken to a detention center in the Saudi capital and little more regarding her location or condition is known. Ms Alqunun garnered global attention when she took her plight to social media this week, tweeting that she had "nothing to lose".

    Netflix Sued Over "Bandersnatch" By "Choose Your Own Adventure" Creator

    Additionally, the suit suggests that 20th Century Fox has optioned the rights to develop films based on these books. The Choose Your Own Adventure series has sold more than 265 million copies worldwide.
    Didn't know about allegations Manafort shared polling

    Didn't know about allegations Manafort shared polling

    Rudy Giuliani, a lawyer for Trump who has repeatedly criticized the Mueller probe as a fruitless "witch hunt", dismissed the sharing of data with Kilimnik as inconsequential.
  • South Africa vs Pakistan

    South Africa vs Pakistan

    But the hosts were unable to forge a position of dominance, struggling to 135 for five at the close, an overall lead of 212. Fast bowler Olivier was twice involved in crucial breakthroughs as Pakistan were bowled out for 185 in their first innings.
    Simona Halep stunned by Ashleigh Barty in Sydney second round

    Simona Halep stunned by Ashleigh Barty in Sydney second round

    I learned a little bit more in Cincinnati, but today I knuckled down and really thought about it and really gave myself a chance. Earlier on Wednesday, Samantha Stosur was knocked out in a two-sets-to-one loss to Switzerland's Timea Bacsinszky .
    Gwyneth Paltrow spent her honeymoon with ex Chris Martin!

    Gwyneth Paltrow spent her honeymoon with ex Chris Martin!

    She added in a teaser clip for Friday's episode of "The Rachel Ray Show": " Moses loves to cook". So we love to go out in LA and find some insane dim sum place far away from where we live.
  • DeMarcus Cousins will make his Warriors debut January  18

    DeMarcus Cousins will make his Warriors debut January 18

    He missed the remainder of last season after suffering the injury. "I would say the last two scrimmages that he's had", Kerr said. Tyson Chandler said he initially considered signing with the Golden State Warriors after getting bought out by the Phoenix Suns.
    Transfer: Sarri speaks on Chelsea selling Willian

    Transfer: Sarri speaks on Chelsea selling Willian

    Pressed on how he believes Willian can improve, Sarri said: "Usually he wants the ball on the feet - always on the feet".
    Toyota, Lexus recall 1.7 million vehicles due to airbag issues

    Toyota, Lexus recall 1.7 million vehicles due to airbag issues

    Japanese manufacturer Takata's front passenger air bag inflators killed at least 23 people worldwide and injured hundreds more. The recalls forced Takata of Japan to seek bankruptcy protection and sell most of its assets to pay for the fixes.
  • Injuries after gas leak causes explosion in central Paris

    Injuries after gas leak causes explosion in central Paris

    Cars were wrecked and other buildings damaged by the blast on Rue de Trévise in the 9th Arrondissement. They have asked people to stay away from the area, to allow emergency services access.
    Emery: Arsenal can not  make January deals

    Emery: Arsenal can not make January deals

    Shkodran Mustafi and Konstantinos Mavropanos are all back in full training and under consideration for the weekend. "We can not sign anyone permanently", Emery said, quoted by Sky Sports News .
    Knicks, Kings Talking Trade Involving Enes Kanter, Zach Randolph

    Knicks, Kings Talking Trade Involving Enes Kanter, Zach Randolph

    ESPN's Adrian Wojnarowski says nothing is close as of now in terms of this potential swap of expiring contracts. It's unclear if this deal will materialize, but it would be a step in the right direction for the Knicks.


Most liked

Megyn Kelly exits NBC after controversial tenure
In an interview on the street in NY with TMZ this week, Kelly said she'll "definitely" be back on television in 2019. Her regret over the comment, however, was apparently not enough to sway NBC executives.

Deputies agree historic name change for Macedonia
However, the ball is now in Athens' court as the name change will be effective only once it is cleared by the Greek parliament. Several hundred people have protested against the deal in front of the parliament building in Skopje over the past three days.

Jasprit Bumrah rested for 3-ODI series, Siraj named replacement
He was the leader of the pack and ended up with 21 wickets in 4 Tests, joint most with Nathan Lyon. In his last Ranji Trophy match for Hyderabad against Punjab , he picked up seven wickets.

Jurgen Klopp provides Joel Matip and Dejan Lovren updates amid injury crisis
Liverpool face a hugely important game this afternoon when they return to league action. "But we try not to make it more complicated than it is", Klopp added.

Gary Kubiak Wont Become Offensive Coordinator Of Broncos
On Wednesday, the Broncos named Vic Fangio as the team's new coach. Kubiak has had interest in returning to coaching this offseason.

Syrian air defense systems strike down several missiles over western Damascus
Israeli officials made no statement on Friday's reports, but seldom comment on alleged strikes. Another official told SANA traffic at the airport had not been disrupted.

Astronomers Detect Mysterious Radio Signals From Deep Space
The flashes only last for a milisecond but they are flung out with the same amount of energy the sun takes 12 months to produce. Instead it uses digital signal processing to "point" the telescope and reconstruct where the radio waves are coming from.

Tottenham boss Pochettino says Man United rumours no 'motivation' for Solskjaer
Solskjaer has won his first five games as United boss but faces his first real test when he lines up against Tottenham . He was a very nice man to speak to and we had a nice chat.

Federal Bureau of Investigation probed whether Trump was Russian agent
As of Friday night, the president has yet to respond to the report, one of the most damning yet in the Russia-Trump saga. Trump also had a criminal aspect, which has always been publicly known: whether his firing of Mr.

Democrats Reportedly Trying to "Rein In" Ocasio-Cortez
They believe the movement behind Ocasio-Cortez to try and help elevate her to a top committee post is undeserved. Ocasio-Cortez, who is extremely active on social media, has yet to respond to the embarrassing report .

MP Jeremy Buckingham’s vomit-inducing fish kill video
Independent MP Jeremy Buckingham posted the footage of the incident to Twitter earlier today. He's requested an urgent report into the mass fish deaths.

See What the Monster in "Bird Box" Was Supposed to Look Like
Given that each character would end up seeing a different variation of the monster, it's hard to tell. "Still a fun project to be a part of".

Oil prices down after lower-than-expected inventory draw
The external audit was started as part of preparations for the initial public offering of state oil company Saudi Aramco. Aramco has so far largely avoided bond markets, relying nearly exclusively on its own cash or bank loans.

Chris Jericho Wouldn't Have Signed With AEW Without A TV Deal
It came down to AEW offering him a better deal, which allowed Jericho to work his cruise and with New Japan Pro-Wrestling. We know them, but your average fan doesn't.

Driver crashed into another car while participating in the 'Bird Box Challenge'
He said it was a warning he never thought he would have to give - don't drive while blindfolded. The company sent out a tweet on January 2, urging people not to participate in the fad.