Apple shares dive; rare revenue warning drags global markets

The new iPhone models that aren't being taken up

"While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China", Cook wrote, noting that "most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China".

Bhansali has argued that consumers are no longer seeing the value for new models of Apple products, like the iPhone XS and MAX, which were more expensive than the iPhoneX, which she says itself was a disappointment.

"On this news, Apple's stock fell $11.97 per share, or over 7.5 percent, during aftermarket trading hours on January 2, 2019, damaging investors", said Bernstein Liebhard LLP, a law firm headquartered in NY.

CNBC reports that Apple's market cap is down to around $674 billion while shares have fallen by almost 40 percent. Apple now expects a minimum of $84 billion in revenue, down from the $89 billion it projected at the end of the last fiscal year.

The announcement, made in a letter from Cook to investors, comes after weeks of signals from inside Apple and its supply chain indicating the Cupertino, California-based company is struggling to sell the latest iPhones released in September.

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.

Chemicals Found on Dutch Beach after Container Spill
So far, around 20 containers have been located near the shores of these islands while another six were found in German waters. Images posted to Twitter show sandals and a My Little Pony toy, alongside flat-screen TVs, damaged containers and even a BMW.

Struggling to sell iPhones, Apple blames customers for not upgrading
While usually Apple would be celebrating another successful holiday season, things didn't quite go to plan this time around. Apple has shaken the business world by lowering its sales and revenue forecast for the next quarter.

3 head coaching candidates for the Miami Dolphins
This is the move Miami needs to make in order to right this ship and put the Dolphins in a position of success for years to come. Starter Ryan Tannehill missed the end of the playoff campaign, all of the 2017 season, and five games in 2018 due to injuries.

Apple attributes disappointing sales to the slowdown of China's economy.

But Apple has held firm on its premium pricing strategy in China despite the risk of a slower economy. According to Cook, all of those factors (plus some others) resulted in fewer iPhone upgrades than expected.

Some analysts, however, questioned the impact of Apple's own actions, such as its unyielding pursuit of high selling prices for its products. After the company confirmed that it slowed down iPhones as their batteries aged, Apple apologized to customers and discounted out-of-warranty battery replacements from $79 to $29.

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.

The industry as a whole has had to deal with declining smartphone sales for a while now, and Apple isn't immune to that trend. Nevertheless, Wall Street countered that iPhones, both at home and overseas, have gotten too pricey for customers' tastes, and analysts don't see any quick fixes for the problem. "Bernstein Liebhard wrote in their press release: "[On] November 1, 2018 during Apple's fourth quarter 2018 conference call, CEO Tim Cook stated that '[o] ur business in China was very strong last quarter. With prices that high, customers are holding onto their smartphones much longer.

But the decline didn't start in the second half of the year, when Apple reported a problem in iPhone sales.

Related news:

Hot News

isis-killer-beheading-video-story-top 5 takeaways from Apple's stark China warning
Jan 05, 2019 - 00:15
Cook's update on Wednesday revealed that guidance has now plummeted to $84 billion in revenue for the quarter. These analysts said in a research note that services represent a huge business opportunity for Apple.

isis-killer-beheading-video-story-top Kim Kardashian & Kanye West Expecting Baby #4
Jan 04, 2019 - 05:58
Due to pregnancy complications and preeclampsia, Kardashian decided a surrogate was the best way to expand her family. The couple are using the same surrogate who gave birth to their 11-month-old daughter, Chicago , US Weekly claims.

isis-killer-beheading-video-story-top WADA chief 'bitterly disappointed' by Russia missing deadline
Jan 04, 2019 - 05:54
Russian Federation was set a 31 December deadline to comply, but Wada's inspection team were denied full access to samples. Drug Free Sport New Zealand Chief Executive Nick Paterson was in no doubt Russian Federation had run out of time.

isis-killer-beheading-video-story-top Arsenal bid for Navas continues Emery’s odd relationship with summer signing Leno
Jan 04, 2019 - 05:27
The unwanted defensive record has reportedly forced Emery into making bids for some wonderful defenders, including a goalkeeper. Arsenal manager Unai Emery has denied reports linking the club with a move for Real Madrid goalkeeper Keylor Navas .

isis-killer-beheading-video-story-top New US Congress in Divided Government
Jan 04, 2019 - 05:23
Beginning Thursday, Democrats would enjoy majority in the House of Representatives. Hundreds of thousands of federal employees are working without pay.

isis-killer-beheading-video-story-top Chinese spacecraft makes first-ever landing on far side of the moon
Jan 04, 2019 - 05:19
The original Yutu rover touched down , along with a lander, on the moon's near side in December of 2013 on the Chang'e 3 mission . The Chang'e-4 mission will be a key step in revealing the moon's mysterious side, a report by state-run Xinhua news agency said.

isis-killer-beheading-video-story-top China's Xi Jinping says Taiwan must be unified with mainland
Jan 03, 2019 - 01:09
Taiwan's leader has rejected the Chinese president's call for unification under a "one country, two systems" approach. She, however, agreed to start a dialogue with Beijing as an exchange between two sovereign states.

isis-killer-beheading-video-story-top TripAdvisor, Skyscanner among top apps sending sensitive data to Facebook
Jan 03, 2019 - 01:05
In some cases, the apps were sharing private data with the social media giant even if users didn't have a Facebook account. Under the new regulation, mobile apps can not collect or share a user's data without their permission.

isis-killer-beheading-video-story-top Seven Australian players hit SCG nets on New Years Day
Jan 03, 2019 - 01:03
India now have a golden opportunity of sealing their first-ever Test series in Australia. "We just got to stay in this contest". He's having a bit of a lean run of it although he's got a couple of 50s.

isis-killer-beheading-video-story-top Troy Tulowitzki agrees to one-year deal with Yankees
Jan 03, 2019 - 00:44
NY also has been talking with Manny Machado , one of the top available free agents. He had $38 million remaining on his contract when he was released by Toronto.

isis-killer-beheading-video-story-top Jon Gruden shares his thoughts on new Raiders GM Mike Mayock
Jan 02, 2019 - 02:03
Mayock understands that his role in this Raiders hierarchy is to give coaches the best possible version of the player they want. The team certainly can use Mayock's expertise, as it will have four picks within the top 35 of the 2019 NFL Draft in April.

isis-killer-beheading-video-story-top Cincinnati Bengals Fire Head Coach Marvin Lewis After 16 Seasons
Jan 02, 2019 - 01:24
After Dirk Koetter of the Bucs and Todd Bowles of the Jets were fired Sunday night, the duo now has company. Denver has posted 5-11 and 6-10 records, respectively, in the last two seasons with Joseph at the helm.

isis-killer-beheading-video-story-top Pluto explorer ushering in new year at more distant world
Jan 02, 2019 - 01:23
Scientists are looking forward to their first up close glimpse at a Kuiper Belt object and already have some mysteries to unravel. Generally speaking, KBOs are thought to be primarily icy bodies that formed at the same time as the solar system.

isis-killer-beheading-video-story-top US House Democrats have plan to fund government, but not a wall
Jan 02, 2019 - 01:17
Trump on Twitter criticized Democratic opposition to the wall project, which carries a total estimated price tag of $23 billion. Trump, however, is still insisting that any deal include billions of dollars to fund his long-stalled southern border wall .

isis-killer-beheading-video-story-top Dallas Stars to host 2020 Winter Classic, report says
Jan 02, 2019 - 01:14
Louis has hosted the All-Star Game and the first in thirty-two years, the last back in 1988 . That matchup will take place at Mosaic Stadium in Regina, Saskatchewan, on October 26, 2019.