What's Going On With Apple

What's Going On With Apple

What's Going On With Apple

Cook attributed the primary drop in revenue to challenges in emerging key markets - mainly China - and a waning in the sales of iPhones. Apple's stock dropped by almost 10 percent once trading resumed.

Apple has warned investors that its revenue over the crucial festive season will be lower than expected, blaming the US-China trade war for disappointing iPhone sales. "We believe the economic environment in China has been further impacted by rising trade tensions with the United States", he wrote.

Apple is the target of nationalist sentiment over the arrest of Huawei's chief financial officer in Canada at the behest of the USA on alleged Iran sanctions violations.

The Chinese government has condemned the arrest and demanded her release.

While President Trump's trade war with China isn't helping Apple and other USA technology companies, Mr Ives believes Apple miscalculated by continuing to roll out high-priced phones in China, creating an opening for rivals with less costly alternatives that still worked well.

Other major exporters, including heavy-machinery manufacturers and tech companies like Intel and Microsoft, also took big losses. The Apple brand is extremely strong - Interbrand, for example, names it the most valuable brand on the planet.

Even Apple's iPhone XR, which was supposed to be a lower-cost alternative to the high-end iPhones, costs about 1,000 yuan more than a competing device.

Apple did not immediately respond to a request for comment on Thursday.

"They're trying to aim at a very fine target", said Dollar, a former World Bank and U.S. Treasury Department official.

"If I have more money to spare, maybe I won't hesitate to buy the latest iPhone", Zhu said as he brandished his bezel-less OnePlus 6, which, except for the logo, looked nearly exactly like an iPhone.

Apple breaks down its revenues into a "Greater China" that includes the People's Republic of China as well as Taiwan.

President Donald Trump said he isn't concerned that Apple Inc. has warned sales will fall short of expectations because of the trade war with China, an announcement that provoked a sell-off in the USA stock market. The Trump administration responded by Apple products from the tariffs.

"Lower than anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfalls to our guidance and much more than our entire year-over-year revenue decline".

Apple Inc.'s falloff in demand for iPhones in China shows the company's flagship product is hurt by its high price and the rise of cheaper, more comparable rival devices in the world's biggest market.

On Thursday a local industry body, the China Anti-Infringement and Anti-Counterfeit Innovation Strategic Alliance, called on Apple to heed the court order and not 'trample the Chinese law by leveraging its super economic power and clout'. Cook's update on Wednesday revealed that guidance has now plummeted to $84 billion in revenue for the quarter.

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