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Apple Cuts Guidance for Latest Quarter; Shares Tumble

Stock MarketsJan 02, 2019 04:55PM ET
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© Reuters.

Investing.com - Apple (NASDAQ:AAPL) stunned investors after the market Wednesday, lowering guidance for the quarter just completed.

For its fiscal first quarter ended Dec. 29, the tech giant now expects revenue of about $84 billion. That’s well below analysts’ consensus estimates of $91.36 billion.

Apple originally forecast a revenue of between $89 billion and $93 billion.

The stock fell 7.5% after hours and should pull down futures and the Dow at the Wall Street open.

Apple blamed lower-than-anticipated iPhone revenue and upgrades, something the sell side has been concerned about lately, and weakness in emerging markets.

A slew of brokerages had reduced their first-quarter production estimates for iPhones after several makers forecast weaker-than-expected sales, leading some market watchers to call the peak for iPhones in several key markets.

"While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be," CEO Tim Cook said in the letter to investors.

"(M)ost of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad," Cook said.

Apple predicts quarterly gross margin of 38% and operating expenses of $8.7 billion.

-- Reuters contributed to this report.

Apple Cuts Guidance for Latest Quarter; Shares Tumble
 

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Comments (7)
Byron Jason
Byron Jason Jan 02, 2019 11:59PM ET
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Apple has out priced the majority of its market. I dont think that they will do anything about it though.
DeMaracus Johnson
DeMaracus Johnson Jan 02, 2019 8:20PM ET
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high phone price=low demand ... what they expect ..
James Benton
James Benton Jan 02, 2019 5:59PM ET
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Is this coming from a britexer. just curious.
Jorel Boston
Jorel Boston Jan 02, 2019 5:22PM ET
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did they really say 84 million or did they mean billion i refuse to believe apple even know what millions are
Cee Tee
Cee Tee Jan 02, 2019 5:22PM ET
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They do.. for iPhone shipments ;) but they meant B up there
Ashish Shah
Ashish Shah Jan 02, 2019 5:22PM ET
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Typo
Jan Buyle
Jan Buyle Jan 02, 2019 5:18PM ET
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I live in Europe and since the America first blabla of the US President I try not to buy US brand products. I bought a Samsung and not an Apple for the first time in my life. Trump didn't even attack Europe very much and it already iritates me. how do you think the Chinese feel? if you were a chinese, would you buy US products? don 't think so...
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Jan Buyle
Jan Buyle Jan 02, 2019 5:18PM ET
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Brady Murray  we have one of the most right wing governments in Europe, where do you get the socialist stuff? Don't believe all your President is telling you ;-) And yes, indeed, if we have a broken tooth, we can go to the dentist and pay 60€, not 1000$ like in the US. But that is smart, not socialist :-)
Jan Buyle
Jan Buyle Jan 02, 2019 5:18PM ET
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lysander spooner  1. If there is one country in the world that tries to copy our beer it is the US, not China. And you know what? We don't care. We are very confident that the original is far better than the copy. Why aren't US citizens more confident about the superiority of their produc???? Good products will Always stand out...
Jan Buyle
Jan Buyle Jan 02, 2019 5:18PM ET
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lysander spooner  2. If what you are saying would be correct, than you would have all CEO's of the major US companies cheering the China approach of your President. But they are not. On the contrary, they are very much against it. Why? Because they do understand world economics. This trade dspute will have long lasting negative consequences for US products world wide. Europe and China are talking about investing in making aircrafts to be less dependend on Boeing, about developing it's own military with more domestic defence companies to be less dependend on the US, more support for domestic technology, railroad companies, etc... All this will work against the US. Ask any economy professor if protectionism has ever worked in the long term, and you will find none that will say it does.
lysander spooner
lysander spooner Jan 02, 2019 5:18PM ET
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Jan Buyle  . . You misunderstood my point about copying beer.. . Samsung sales have dropped significantly more in China than Apple. In fact, overall sales of mobile phones have contracted for last two quarters? tariffs have nothing to do with that.. . . I am not arguing for protectionism. never mentioned it once. I am a free trader, So is Trump. He offered Europe no tariffs they refused. He offered China no tariffs. they refused. In fact he has offered every country but no one accepts. Why do you suppose that is? Why do these supposed modern States need protection from American products and services while at the same time demand that they get special access to US  market? hey good luck to Europe and China deals... . . Notice how the new Chinese Bomber looks a lot like the F-35? How do you think that happened? They either stole it or bought it from one of the many corrupt American politicians.. . . .  CEO's: Their interests are not the same as the people's interest are they? CEO's are quite happy with global oligarchy.
Jan Buyle
Jan Buyle Jan 02, 2019 5:18PM ET
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lysander spooner So America First is not protectionism… You're joking, right??
KC Yeo
KC Yeo Jan 02, 2019 5:13PM ET
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84m?
Giovanni De Lorenzi
Giovanni De Lorenzi Jan 02, 2019 5:13PM ET
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lol
Tomek Mi
Tomek Mi Jan 02, 2019 4:51PM ET
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you mix millions wirth billions.
 
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