Published: Sun, January 06, 2019
Business | By Eloise Houston

Apple cuts earnings forecast

Apple cuts earnings forecast

Those include "consumers adapting to a world with fewer carrier subsidies, U.S. dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements", Cook wrote.

That figure is more than 7 percent lower than Apple's previous forecast of $89 billion to $93 billion, which it issued at the end of its fiscal 2018.

USA stocks fell sharply on Thursday after yesterday's surprise revenue forecast downgrade from Apple CEO Tim Cook.

The yield on the 10-year Treasury fell to 2.64 per cent.

Apple is the latest company grappling with increasing Chinese consumer anxiety.

China still is one of the fastest-growing economies, with 2018's expansion forecast at about 6.5 per cent.

He also said that China "is not doing well now, and it puts us in a very strong position".

"It's definitely worrying", said China specialist David Dollar, senior fellow at the Brookings Institution. Growth in China and the eurozone is slowing.

Apple shares slid some 7.6 per cent in after-hours trade on the news.

There are likely many others, too, that will be forced to announce lower-than-expected earnings, according to the chairman of the White House Council of Economic Advisers.

"If I have more money to spare, maybe I won't hesitate to buy the latest iPhone", Zhu said as he brandished his bezel-less OnePlus 6, which, except for the logo, looked nearly exactly like an iPhone. "People are anxious about losing jobs", she said.

The Chinese government has condemned the arrest and demanded her release. China accounts for one-third of the industry's global handset shipments. "It will be interesting to see how Apple shares react if there's a China trade agreement". It expects last year's total Chinese purchases to shrink by 8 per cent to 9 per cent compared with 2016.

When Apple sales started falling in China in 2016, Apple executives gave every excuse in the book, including slower economic growth in the country. While it's unclear whether Cook also considers him a friend, Trump has made it clear that he likes the Apple CEO.

After decades of expansion, the Chinese economy is slowing down.

The slump is a setback for the ruling Communist Party's efforts to nurture self-sustaining, consumer-driven economic growth and wean China from its reliance on exports and investment. Moving it out of China would be extremely hard and highly unlikely.

Analyst Rob Hall said that Apple risks following the route of Nokia, however, as its customers refuse to fork out for newer, expensive devices. "To me, it's more clues about what's going on with the global economy".

China reported this week that factory activity shrank in December for the first time in more than two years. Soft real estate sales have forced developers to cut prices. With the benefits of US tax reform wearing off large tech firms will be under pressure throughout the year. But that was thanks partly to exporters rushing to beat further American duty increases - a trend that is starting to fade.

In smartphones, that includes Huawei, Oppo, Vivo and Xiaomi. "Nobody needs such a phone".

Emily Li is a 37-year-old advertising designer in Beijing. Northwest Quadrant Wealth Management LLC now owns 3,263 shares of the iPhone maker's stock worth $680,000 after buying an additional 234 shares in the last quarter.

"I have no plans to buy an apartment, a vehicle or any other major items", Yuan said.

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