SAN FRANCISCO – Apple Inc. lowered on Tuesday its sales expectations for the first quarter of the fiscal year which it says is due to slowing iPhone sales and the economic slowdown in China.
In a letter addressed to investors and published after the New York Stock Exchange closed, the CEO of the Cupertino-based company, Tim Cook, indicated that in the first three months of the new fiscal year, the company expects approximately $84 billion of revenue.
This figure is significantly below the previous forecast, in which the company expected between $89-$93 billion of revenue.
“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 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad,” Cook said.
The CEO also said that the strength of the US dollar had created “headwinds” making sales outside the US difficult.
The company is expected to publish the final results (corresponding to the months of October, November and December 2018, but which constitute the first quarter of 2019) at the beginning of February.
Apple sowed doubts among investors last November when, after reporting the results for the entire fiscal year of 2018, it announced that from then on it would stop publishing quarterly iPhone sales figures, which Wall Street interpreted as a bad sign.
Since then, Apple has suffered sharp declines on markets and has lost both its status as the world’s most valuable company based on its market capitalization (overtaken by Microsoft and Amazon) and having exceeded $1 trillion on Wall Street.
After making public the revision of sales expectations, Apple shares dropped 7.2 percent in after-hours trading.