Apple slashes $93bn sales forecast to $84bn

Apple CEO Tim Cook has cited that declining sales in China and the US—China trade war has resulted in the first cut in revenue forecast since 2011

3Jan

Apple has cut its quarterly revenue forecast to $84bn from an original estimation of $93bn for the first quarter of 2019. Apple CEO Tim Cook has reportedly blamed the decreased demand of Apple phones in China for the decline.

This is the first time the tech giant has reported a decline in sales within the quarterly reporting since Cook became CEO in 2011, a Bloomberg report cited.

Apple originally estimated a revenue of between $89–$93bn. On Wednesday, however, the tech mogul lowered its forecast to $84bn in revenue, recording lower than analysts anticipated with their estimation of $91.5bn.

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

Additionally, in an interview with CNBC, Cook stated that the trade tension has further impacted sales.

In November 2018, Apple's stock dropped 1.9% in response to President Donald Trump's proposed new tariffs on Chinese-made mobile phones, the latest development in the on-going US-China trade war.

Chief economist at Apple shareholder Capital Investment Counsel, Hal Eddins, said that Cook's statements on the impacts of US trade war with China "might be a dig at US President Donald Trump, but mostly he may be using the trade turmoil as an excuse for some missteps they've made over the last year".

However, Kiranjeet Kaur, an analyst at market research firm IDC, commented: "Apple sales in China have not been doing well for a few quarters now, part of the reason is that their price points have gone too high – past the $1,000 mark."

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