iPhone Sales Disappoint as Apple Reduces Revenue Forecast
Dow 30 component Apple (AAPL) revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it.”
Apple shocked the market when it cut its revenue forecast for quarter one of fiscal 2019, supporting its decision with weakness in China, one of its key markets, and lower-than-expected iPhone revenue from the holiday season. The first quarter revenue is now forecasted at $84 billion, from $89 billion to $93 billion previously anticipated.
On Wednesday, trading paused for Apple shares at 4:25 p.m. ET just before the announcement of the lowered forecasted revenue. The stock dropped 8.49% once trading resumed 25 minutes later, which is the lowest the stock’s level has been since July 2017.
“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China. In fact, most of our revenue shortfall to our guidance, and over 100% of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad.” – Tim Cook, Apple CEO
Barring the revenue reduction forecast, the other items of the forecast seem to in line with prior issued guidance.
Apple shares have fallen 29% since the reporting of its quarterly results on November 1 through the close of market on Monday.
Apple, Inc. is expected report its quarter one fiscal 2019 financial results after the market close on January 29.
Learn more about Apple and track its ongoing progress at Vista Partners Apple (AAPL) Coverage Page.
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
Stay Informed! Stay Competitive!