WASHINGTON (Pakistan Point News / Sputnik - 03rd January, 2019) An economic slump in China and US trade tensions have resulted in a drop in sales of iPhones and forced Apple to downgrade earnings estimates for the first quarter, company Chairman Tim Cook said in a letter to investors.
"While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China," Cook said on Wednesday. "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 noted that China's economy slowed in the second half of 2018 amid expectations that rising trade tensions with the United States will continue to impact sales.
Apple now expects revenue of approximately $84 billion in the December quarter, compared with the company's earlier forecast of revenue of $89 billion and $93 billion.
Although non-phone categories, including the Mac, Apple Watch and iPad, grew 19 percent worldwide, Cook noted that more than 100 percent of the companies fourth quarter year-over-year revenue decline occurred due a drop in Chinese sales of iPhones and other Apple products, Cook said.
Other factors adversely affecting Apple included a strong US Dollar and an economic slowdown in many emerging markets, Cook added.
