Apple to Miss Sales Expectations, Dow takes a Hit

Apple admits it is going to miss iPhone sales

Apple admits it is going to miss iPhone sales

Sacconaghi acknowledged that "a meaningful portion of the China weakness is macro driven", which means there are circumstances beyond Apple's control.

Although Cook pointed fingers at China almost a dozen times in his letter, many analysts believe Apple's underlying issues are far more complex than a slowdown in one market.

Apple had issued previous guidance suggesting that revenue for its fiscal first-quarter 2019, ended December 29, would come in at between $89 billion and $93 billion.

Both of these numbers may sound positive; however, Cook's original estimate from about 60 days ago now was that Apple could earn as much as $93 billion in the quarter.

President Donald Trump is chiming in on Apple's sales warning earlier this week, which led the company's stock to drop. The Trump administration responded by Apple products from the tariffs.

Trader Mark Muller works on the floor of the New York Stock Exchange, Thursday, Jan. 3, 2019.

Stocks are widening their losses on Wall Street after Apple warned of a steep slowdown in iPhone sales in China.

Apple Inc.'s falloff in demand for iPhones in China shows the company's flagship product is hurt by its high price and the rise of cheaper, more comparable rival devices in the world's biggest market. Past year was truly a roller coaster for the stock. But that was the country's lowest rate of growth since the 2008 world economic crisis. Cook said the trade-in program is one of the initiatives to improve the company's results in his letter, but he didn't specify his expectations for the promotion in China.

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A woman browses her iPhone as she walks by a mural depicting an iPhone and Chinese people buying a smartphone to communicate with family members, at a subway station in Beijing.

"It's definitely worrying", said China specialist David Dollar, senior fellow at the Brookings Institution. He described the change in how Chinese buyers see the future as "definitely worrying".

But what happens when the Chinese growth juggernaut slows? The Associated Press reported his comments. She told the AP she is delaying buying another vehicle or making other major financial decisions right now. "People are anxious about losing jobs", she said.

Apple's share of China's smartphone market has dwindled over the past three years and is expected to fall further as demand for expensive iPhones continues to erode. "The fact that Apple didn't raise the issue of price in its pre-announcement letter maybe a reflection of the fact that there is no easy solution to the problem".

Apple sets prices in different countries based in part on taxes and the local currency's strength against the dollar. Tech shares took a 1.7% hit.

"I don't think the strategy laid out here by Tim Cook is one that will significantly turn around the iPhone business", Zino said.

Kevin Hassett, White House Council of Economic Advisors chief, said January 3 that "a heck a lot of U.S. companies that have sales in China are going to be watching their earnings being downgraded next year until we get a deal with China".

USA equities just had their worst December since 1931 as concerns including the U.S. "There's a hole in Apple's product portfolio - they do not have a low-cost smartphone to fully exploit emerging markets".

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