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.
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."