In an official letter to investors today, Apple CEO Tim Cook warned them of the fact that the first-quarter earnings might be much weaker than they had initially expected, stating reasons such as fewer iPhone upgrades than what they had anticipated. This weak flow of iPhone demand comes mainly from China, although Tim Cook did say that even in some of the developed Apple markets, iPhone upgrades were not as usual as they normally are.
In the letter, Tim Cook gives out variety of explanations in order to justify the dip in Q1 earnings — unexpectedly early timing for the launch of the iPhone XS and XS Max in comparison to the iPhone X, the current state of the US dollar, production difficulties due to launch of various new products etc. However, the truth remains that people all over the world are just not interested in buying newer iPhone models every year as they were earlier.
In a recent interview with CNBC, Tim Cook explained quite briefly on the fact that the “the trade tensions between the United States and China put additional pressure on their economy,” which resulted in a lot lesser users. To sum it all up, Apple will most probably miss its Q1 earnings estimate by nearly $9 billion and as a result, there was a 10 percent drop in the stock of the company once the news came out about Apple missing its yearly target.
You might also like
More from Business
Amazon’s Chinese Joint Venture Is Currently In Talks Regarding A Merger Deal With Local E-Commerce Website Kaola To Establish Brand In The Chinese Market
On Tuesday, it was reported by the Beijing based independent business magazine Caijing that there might be a merger deal …
The Top Administrative Court In Egypt Removes Ban On Ride-Hailing Firms Uber And Careem Allowing Them To Resume Their Operations In The Country
On Sunday, the highest administrative court in Egypt removed a ban on ride-sharing firms Uber and Careem allowing them to …
Twitter Co-Founder Evan Williams To Step Down From Company’s Board Of Directors By End Of The Month After Serving On The Board For 12 Years
On Friday, the micro-blogging platform Twitter announced that Evan Williams, who founded the company along with Jack Dorsey, Biz Stone, …