Wall Street has not received anything good the announcement by Apple for which it has revised downwards its forecast of income for the first quarter of its fiscal year (October – December 2018), reducing its turnover until the 73,910 million euros compared to up to 81,829 million euros previously estimated. What the president of the company Tim Cook has acknowledged in a letter to shareholders, is attributable to the poor performance of iPhone sales in China. Specifically, eThe Nasdaq technology index fell 1.56% in the afternoon, while the Dow Jones collapsed 1.90%. The shares of Apple were also heavily punished by investors and were left around 9% falling below 145 dollars per share and accumulating in the last five days a loss of 7.79% of its value.
The American giant has cut between 5.6% and 9.7% its previous sale expectations, which anticipated an income range of between 89,000 and 93,000 million dollars (78,309 and 81,829 million euros).
In this regard, the CEO of Apple has expressed concern about the commercial tensions between China and the US, noting that the economic environment in the Asian giant "has been further affected by growing commercial tensions with the US", although it underlines its confidence in the "bright" future of Apple's business in China.
China is not a country for Apple
"While we anticipate some difficulties in key emerging markets, we did not foresee the magnitude of the economic slowdown, particularly in China," Cook says in his letter, which states that "most of the income deficit with respect to forecasts, and on the one00% of the decline in sales worldwide, took place in China through the iPhone, Mac and iPad ».
In fact, Cook has specified that "the lower income than expected for the iPhone, primarily in China, they represent all the billing deficit with respect to our forecasts and much more than our total decrease in revenue year after year, "noting that the rest of the categories outside of Apple's flagship device registered growth of almost 19% year-on-year.
However, despite attributing to China and other emerging markets most of the fall in revenue from iPhone sales, Tim Cook has pointed out that in some developed markets iPhone updates "were not as strong as they thought they would be".
On the other hand, the CEO of Apple highlights that, despite this downward revision of their expectations, the company expects to announce a new record in its profit per share, adding that the base of active Apple devices increased by more than 100 million units in the last twelve months, reaching a record high in the global use of the company's products.