Apple Lowers its Revenue Guidance for Q1 Following Weaker iPhone Sales

By January 3rd, 2019 AT 11:37 AM

Following weaker than expected iPhone sales, particularly in China, Apple has lowered its revenue guidance for fiscal 2019 first quarter, which ended on December 29. In a letter to investors on Wednesday, Apple CEO Tim Cook said that the company now expects revenue of approximately $84 billion, down from the $89 to $93 billion it had previously projected.

apple-revenue-lowering-q1

Cook acknowledged that the revenue shortfall in its guidance was partly due to China’s trade tensions with the US. The slowdown in the Chinese economy also impacted its revenue, he said. Apple stock fell about 7% on the news, CNBC reported.

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Cook said. “In fact, most of our revenue shortfall to our guidance, and over 100 per cent of our year-over-year worldwide revenue decline occurred in Greater China across iPhone, Mac and iPad,” he added.

Cook said that lower than anticipated iPhone revenue, primarily in China, accounts for all of Apple’s revenue shortfall to its guidance and for much more than its entire year-over-year revenue decline.

“And, while we saw challenges in some emerging markets, others set records, including Mexico, Poland, Malaysia and Vietnam,” he said.

“Our profitability and cash flow generation are strong, and we expect to exit the quarter with approximately $130 billion in net cash,” Cook said. Apple will report the next quarter results on January 29.

Read more on:

2
Leave a Reply

avatar
Photo and Image Files
 
 
 
1 Comment threads
1 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
KGF (Kolar Gold Fields) | Magnum Opus of IndiaAshley Recent comment authors
newest oldest most voted
Ashley
Ashley

Apple makes great hardware and software that blends amazingly well. It will need to broaden its target audience by lowering the prices to some extent. If Apple devices were affordable without compromising on its hardware and software quality, it would be a runaway success and a real threat for Android. The problem is also Apple itself. Apple mobile devices last for a good 4 to 5 years so price conscious users don’t care to upgrade since it receives software updates regularly unlike Android which only has guaranteed updates for 2 years mostly and up to 3 years for ‘made by… Read more »

KGF (Kolar Gold Fields) | Magnum Opus of India
KGF (Kolar Gold Fields) | Magnum Opus of India

Fake account from Apple’s Indian promotional arm, I guess.

Recent Posts

Idea Ranks Top in Haryana for Upload Speeds After Network Consolidation in the State

With the 4G network of all the telecom operators spreading across India at a rapid pace, now the competition has...

Airtel Payments Bank Introduces GoI Atal Pension Yojana for Subscribers

Bharti Airtel is taking its attempts against Reliance Jio and the market leader, Vodafone Idea very seriously, and to ramp...

Twitter Decides to Eliminate the Option of Letting Users Add Their Precise Location

Micro-blogging site Twitter has decided to eliminate the option of letting users add their precise location details like latitude and...