Apple puts Wall St on the alert after 'darkest day'

Apple puts Wall St on the alert after 'darkest day'”

The memo, aimed at pepping up staff after cutting its revenue outlook for the first time since 2002, reiterated Cook's note to investors that it missed its target due to lower than expected iPhone sales in China. Nevertheless, the relatively poor earnings performance has depressed Apple's share price by about 8% recently, and may have had a knock-on effect on other tech stocks.

"The question for investors will be the extent to which Apple's aggressive pricing has exacerbated this situation and what this means for the company's longer-term pricing power within its iPhone franchise", said James Cordwell, an analyst at Atlantic Equities.

"While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China", Cook wrote.

Suppliers in Europe and Asia slumped on the news.

The promotion in China is available until January 31, around the same time the iPhone maker is expected to release its fiscal first-quarter earnings. "Blaming macro weakness and trade concerns is obfuscation".

In December, Bloomberg News reported the company was facing a "fire drill" to boost iPhone sales. "Apple is just outpricing itself-not only in the iPhone market, but also in the MacBook Pro market".

Apple finished the day down 9.9 percent, at $142.19.

Any new product offering from Apple is unlikely to be revealed before September, when the company traditionally unveils its new iPhones.

Kevin Hassett, chairman of the White House council of economic advisers, said that U.S. companies selling in China would see their sales recover if the trade dispute is resolved. In announcing the new forecast, Cook said the Chinese smartphone market is contracting and noted that foot traffic to Apple retail stores has been down in recent months. The second largest economy is slowing, and could be a convenient excuse for companies missing forecasts, but two veteran global investors say Apple's problems are largely self-inflicted, not a harbinger of a looming catastrophe in emerging markets.

"This is just another little tea leaf as to the goings on behind the curtain in China and last night's PMI coming out weaker than people thought", said Kevin Caron, a senior portfolio manager at Washington Crossing Advisors. The news comes as US earnings season looms around the corner.

While President Trump's trade war with China isn't helping Apple and other USA technology companies, Mr Ives believes Apple miscalculated by continuing to roll out high-priced phones in China, creating an opening for rivals with less costly alternatives that still worked well. Mid-level officials from the Trump administration are scheduled to travel to Beijing for talks early next week.

Cirrus Logic, which makes audio chips for Apple products, dropped 7 percent. Services generated $10.8 billion in revenue for the quarter - a 27 percent increase from a year earlier. While a number of things can influence a user's decision to upgrade their smartphone, Cook cited Apple's "significantly reduced" iPhone battery replacements as one reason why some have chosen to stick with their current models.

Like this



04 January 2019
Golden Globes 2019 Presenters Include Chadwick Boseman, Harrison Ford, Saoirse Ronan
In September, Oh and Samberg co-presented the award for outstanding directing for a comedy series at the Primetime Emmy Awards. Mexican director Alfonso Cuaron's lovingly shot " Roma " is expected to win the Golden Globe for best foreign language film.

04 January 2019
German politicians targeted by hackers
It described its activities as "security researching", "artist" and " satire and irony " and said it was based in Hamburg. Beyond politicians, who also included President Frank-Walter Steinmeier, celebrities and journalists were also targeted.

04 January 2019
China confirms USA trade talks in Beijing next week
Trade Representative Jeffrey Gerrish will lead the U.S. delegation for the talks, the Commerce Ministry said in a statement. China and the USA reached a truce on the trade war and agreed to settle disputes in 90-day talks that will end on March 1.

04 January 2019
Mauricio Pochettino hints he wants to stay at Tottenham to win trophies
If Eriksen decides against a new contract, then Tottenham could choose to sell him in the summer rather than risk losing him on a free next year.

04 January 2019
Maurizio Sarri delivers Chelsea FC injury update ahead of FA Cup clash
Maurizio Sarri implied that Chelsea need to add a new striker in the winter transfer window following their 0-0 draw to Southampton .

04 January 2019
Protests erupt after two women make landmark step in Indian temple
Nine people accused of involvement in the attack have been identified and two CPI (M) workers have been arrested, police said . Modi told India's ANI news service that he felt the temple issue was more about religious tradition than gender equality.

04 January 2019
Aaliyah's mother calls R. Kelly sex allegations 'lies and fabrications'
We asked Erykah Badu . "We used to sneak Aaliyah out of the hotel room and take her all over the place", says Cunningham. Kelly , claims that Kelly had sexual encounters with a number of underage girls in his '90s heyday, including Aaliyah .

04 January 2019
Unsafe powder from lost cargo found on Dutch island
Images posted to Twitter show sandals and a My Little Pony toy, alongside flat-screen TVs, damaged containers and even a BMW. He told AFP the bag had come from one of three containers transporting organic peroxide that had been on board the MSC Zoe .

04 January 2019
DeAndre Hopkins To Help Jazmine Barnes' Family With Funeral Costs
He has described Sunday's shooting as " totally unprovoked " and asked people who live nearby to review their surveillance videos. Jesse Razo released a statement, which read, "We're going to use all resources available to bring this killer to justice".

04 January 2019
Keys to the Game: Bulls at Raptors
According to oddsmakers at , the Raptors are favored at home, as they are getting odds of -10 points against the Bulls. The Bulls may have had higher percentages than the Raptors, but they didn't have the opportunities Toronto did.