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Thanks to the lawyers uh, I marbled the foyer
Apple slashes revenue guidance, says iPhone sales are weak in China — shares tank
Apple slashes revenue guidance, says iPhone sales are weak in China — shares tank
Published 16 Hours Ago Updated 13 Hours Ago
Watch CNBC's full interview with Apple CEO Tim Cook 14 Hours Ago | 13:46
Apple lowered its Q1 guidance in a letter to investors from CEO Tim Cook Wednesday.
Apple stock was halted in after-hours trading just prior to the announcement, and shares were down about 7 percent when trading resumed 20 minutes later.
Apple lowered revenue guidance to $84 billion, down from the $89 to $93 billion it had previously projected. The company lowered gross margin to about 38 percent from between 38 percent and 38.5 percent.
Apple blamed a variety of factors for the lowered guidance, including a weakening economy in China and lower-than-expected iPhone revenue. Apple said the lower-than-anticipated revenue happened "primarily in Greater China," but also said that upgrades to new iPhone models in other countries were "not as strong as we thought they would be."
Cook's letter said fewer carrier subsidies, price increases based on the strength of the U.S. dollar and cheaper battery replacements caused the weak iPhone upgrades for the quarter.
"If you look at our results, our shortfall is over 100 percent from iPhone and it's primarily in greater China," Cook told CNBC's Josh Lipton in an interview Wednesday. "It's clear that the economy began to slow there for the second half and what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy."
There have been several reports pointing to weak iPhone sales in recent months. Some Apple suppliers cut their estimates last quarter, leading many to speculate consumers weren't upgrading to the new models. Apple also took the unusual step of promoting discounted prices for iPhones on its website if customers traded in an older model. The company also increased the trade-in value of some older iPhone models.
Despite the lowered guidance, Cook did point out some growth areas in the letter to investors. He said Apple's device install base increased by 100 million units over the last year. Apple has been promoting its growing install base as a way to show it can squeeze more revenue out of each of its uses through subscription services like iCloud storage and Apple Music. The company is said to be considering new subscription products through its Apple News and TV apps as well.
"We had sort of a collection of items going on. Some that are macroeconomic and some that are Apple specific," Cook said in his CNBC interview. "And we're not going to sit around waiting for the macro to change. I hope that it does and I'm actually optimistic, but we are going to focus really deeply on the things we can control."
Looking for a bottom doe
Apple slashes revenue guidance, says iPhone sales are weak in China — shares tank
- Apple lowered its Q1 guidance, following weaker than expected iPhone sales and a weakening economy in China.
- Apple stock fell about 7 percent on the news.
- There have been several signals throughout the quarter that Apple's latest iPhone models weren't selling as well as expected.
Published 16 Hours Ago Updated 13 Hours Ago
Watch CNBC's full interview with Apple CEO Tim Cook 14 Hours Ago | 13:46
Apple lowered its Q1 guidance in a letter to investors from CEO Tim Cook Wednesday.
Apple stock was halted in after-hours trading just prior to the announcement, and shares were down about 7 percent when trading resumed 20 minutes later.
Apple lowered revenue guidance to $84 billion, down from the $89 to $93 billion it had previously projected. The company lowered gross margin to about 38 percent from between 38 percent and 38.5 percent.
Apple blamed a variety of factors for the lowered guidance, including a weakening economy in China and lower-than-expected iPhone revenue. Apple said the lower-than-anticipated revenue happened "primarily in Greater China," but also said that upgrades to new iPhone models in other countries were "not as strong as we thought they would be."
Cook's letter said fewer carrier subsidies, price increases based on the strength of the U.S. dollar and cheaper battery replacements caused the weak iPhone upgrades for the quarter.
"If you look at our results, our shortfall is over 100 percent from iPhone and it's primarily in greater China," Cook told CNBC's Josh Lipton in an interview Wednesday. "It's clear that the economy began to slow there for the second half and what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy."
There have been several reports pointing to weak iPhone sales in recent months. Some Apple suppliers cut their estimates last quarter, leading many to speculate consumers weren't upgrading to the new models. Apple also took the unusual step of promoting discounted prices for iPhones on its website if customers traded in an older model. The company also increased the trade-in value of some older iPhone models.
Despite the lowered guidance, Cook did point out some growth areas in the letter to investors. He said Apple's device install base increased by 100 million units over the last year. Apple has been promoting its growing install base as a way to show it can squeeze more revenue out of each of its uses through subscription services like iCloud storage and Apple Music. The company is said to be considering new subscription products through its Apple News and TV apps as well.
"We had sort of a collection of items going on. Some that are macroeconomic and some that are Apple specific," Cook said in his CNBC interview. "And we're not going to sit around waiting for the macro to change. I hope that it does and I'm actually optimistic, but we are going to focus really deeply on the things we can control."
Looking for a bottom doe
