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Apple blames revenue slump on slowing Chinese economy as iPhone sales slow

Apple blames revenue slump on slowing Chinese economy as iPhone sales slow

The note about record activations comes as Apple for the first time did not report quarterly unit sales of the iPhone, which it's done since the launch of the iPhone in 2007.

Apple shares fell 10 percent to $142.19, the biggest drop in nearly six years, in New York Thursday.

Shares in Apple opened 8.6 per cent down on Wall Street this afternoon, after a shock revenue warning from chief executive Tim Cook caused shivers across global markets and exchanges.

Apple's revised Q1 guidance forecast is dropping by up to $9 billion in revenue compared to its original estimate.

The Dow Jones Industrial Average tumbled more than 660 points as Apple stock dropped almost 10 percent - the biggest single day decline for the company since 2013 - just one day after it slashed its revenue forecast.

Apple's top-of-the-line iPhones have a starting price of $1,000 (£800).

"If you look at our results, our shortfall is over 100% from iPhone, and it is primarily in greater China", Cook told CNBC.

Apple's CEO Tim Cook announced that his company is in the midst of an economic downfall due to several factors. A functional iPhone 7 Plus with the same amount of storage can get a trade in value of 1939 yuan ($282). Concern about the pace of growth in China, the impact of the US tariff war and the general state of technology valuations all got an airing in the reaction to Apple's warning. The truth remains that the iPhone has always been Apple's core business and if Apple can't sell enough of them, the whole company struggles.

Tesla shares fall on price cut, soft Model 3 deliveries
Tesla's own internal tracking shows its deliveries were in line with or above estimates, spokesman Dave Arnold told reporters. Heading into the quarter, financial analytics firm FactSet had projected the company would manufacturer 64,900 Model 3s.

The promotion in China is available until January 31, around the same time the iPhone maker is expected to release its fiscal first-quarter earnings.

Shares of US-based suppliers and chipmakers including Cirrus Logic Inc, Skyworks Solutions Inc, Analog Devices, Broadcom Inc, NXP Semiconductors NV and Micron Technology Inc were all down in morning trading.

Although many analysts were anxious over Apple's iPhone issues, one remains unconcerned and upgraded Apple shares to "neutral" instead of "sell." as CNBC noted.

"As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed", Cook said.

"This is just another little tea leaf as to the goings on behind the curtain in China and last night's PMI coming out weaker than people thought", said Kevin Caron, a senior portfolio manager at Washington Crossing Advisors.

Both Apple and Bernstein Liebhard have been contacted for comment.

Peter Richardson, a research director at Hong Kong-based Counterpoint Research, said it was hard to see a catalyst that would help Apple recover lost ground in China.


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