Apple attributes disappointing sales to the slowdown of China's economy.
"The question now is will Apple change its strategy or stick to its hubris", Ives said.
The tech giant said revenue for its fiscal first quarter, which ended December 29, will be about $84 billion, falling short of an average analyst estimate of $91.5 billion.
And, yes, this is going to bleed well beyond Apple only pulling down $84 billion in revenue for a single quarter, because...
"We did not foresee the magnitude of the economic deceleration, particularly in Greater China", Cook wrote in a letter to investors. "Lower than anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline", Cook said, noting that iPhone upgrades in developed markets like North America and Europe "also were not as strong as we thought they would be".
At the centre of Apple's shift is the iPhone - the most profitable phone in history, responsible for three-fifths of Apple's income in its fiscal fourth-quarter of 2018. In the broader market, the S&P 500 futures fell 1.5 percent.Читайте также: Sharapova advances to Shenzhen Open quarterfinals
A slew of brokerages reduced their first-quarter production estimates for iPhones after several component makers in November forecast weaker-than-expected sales, leading some market watchers to call the peak for iPhones in several key markets. But Cook specifically said he "would not put China in that category" of countries with troubled growth. The company said wearables sales grew by nearly 50% over last year's holiday quarter, the Apple Watch and AirPods being especially popular this year. That would make Apple's shitty quarter the world's problem, and that's just good management.
Apple has held firm on its premium pricing strategy in China despite the risk of a slower economy, a factor that has been exacerbated by the strong USA dollar.
One thing Cook didn't mention in his letter is Apple's declining market share in China and the rise of domestic rivals like Huawei and Oppo.
In November, the company said it would stop reporting unit sales of iPhones, iPads and Macs beginning in fiscal 2019.
Along with slowed growth there in the second half of a year ago, Cook said that the "economic environment in China has been further impacted by rising trade tensions with the United States".
Other investors were not immediately alarmed.
"When the U.S. went after the Huawei founder's daughter, the Chinese government made Apple the target of the day, so sales should be way off", Rob Enderle, an independent technology analyst, said.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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