Published: Thu, January 03, 2019
Markets | By Otis Pena

Apple Reveals It Underestimated Challenges in China, Revises Guidance for Holiday Quarter

Apple Reveals It Underestimated Challenges in China, Revises Guidance for Holiday Quarter

Apple cut its revenue outlook for the latest quarter Wednesday, citing steeper-than-expected "economic deceleration" in China and emerging markets. The official results are scheduled to be released January 29.

While Apple believed it was in the right to intentionally lower iPhone performance to save on battery life, the company was facing a good deal of consumer outrage at the time, so it issued an offer at the end of its letter to customers: For one year, until December 31, 2018, customers could go into an Apple store and replace the batteries in their iPhones for just $US30.

Apple has recently become a target of patriotic backlash in China, after Huawei's Chief Financial Officer Meng Wanzhou was arrested in Canada in December by the request of the United States over allegations of violating sanctions against Iran. Is this a "blip" or a significant change in the way Apple operates its hardware or do you care and wonder why such a report is pushing the Aussie dollar down almost 4 cents against the Greenbank in the last hour?

The Dow Jones Industrial Average and other major United States stock indices closed in the green on Wednesday following another day of the sort of volatile trading that Allianz Chief Economic Advisor Mohamed El-Erian predicted will be the "new reality" for the stock market.

Apple Inc. plans to hold off until at least 2020 before offering an iPhone that can connect to 5G networks, according to people familiar with its plans.

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Peak Apple Apple shares were temporarily pulled from trading on Wednesday as the Cupertino idiot-tax operation warned of lousy sales numbers on the horizon.

The impact of the guidance cuts spilled over into other tech stocks, as chipmakers Nvidia and AMD faced losses, as did prominent electronics retailers including Best Buy, whose stock is now down 2.52 percent during the extended trading session.

Migrants met with tear gas on US-Mexico border
The incursion took place at a spot where there is border fencing, but it's a very old version that's relatively easy to penetrate. It said its agents could not assist the children because of the rocks being thrown.


Apple is sure feeling the heat of 2018 as it gears into 2019.

Now, Apple must try to find a way to win back Wall Street's confidence and reverse a steep decline that has erased $US350 billion in shareholder wealth in just three months. This is not to say that the rumoured Apple video streaming service won't be neat. China's economy has been pinched by the ongoing Sino-US trade war which is spilling over to other Asian economies.

"The question now is will Apple change its strategy or stick to its hubris", Mr Ives said.

Weakness in some emerging markets had a greater impact than the company had foreseen on device sales, which also resulted in fewer iPhone upgrades than anticipated.

But outsiders will find it harder to see how that is working out.

In the meantime, Apple's older iPhone 7 and iPhone 8 models remain available for consumers who don't want to break the bank for a new iPhone. Cook pointed out that non-iPhone categories "combined to grow nearly 19 per cent year-over-year". That reversal of fortune could reinforce fears of a global economic slowdown.

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