Apple CEO Tim Cook has published a letter to investors warning of weaker-than-expected first-quarter results, citing "fewer iPhone updates than we expected." Weaker demand came mainly from China, though Cook points out that "in some developed markets the updates were not as strong as we thought they would be."
In his letter, Cook offers several explanations for the guidance of lower earnings: the early launch of the iPhone XS and XS Max compared to the iPhone X, the strength of the dollar, supply constraints due to the number of new Apple products released and general economic weakness in some markets. But the central question remains simple: People just are not buying as many new iPhones as Apple expected.
In an interview with CNBC, Cook elaborates the deficit, noting that "trade tensions between the United States and China further pressure its economy," resulting in fewer clients. But Cook also mentioned fewer carrier subsidiaries on new iPhones, as well as the dramatically reduced battery replacement price for older models (due to Apple's iPhone slowdown drama at the end of 2017) as contributory factors.
Altogether, the revised forecast for the first quarter of Apple shows $ 9 billion in revenue loss, compared with the original estimate. Apple shares fell almost 10% after trading resumed.
Source: The Verge
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