Tim Cook will host meeting for all Apple employees to talk iPhone
- Author: Wendy Palmer Jan 05, 2019,
Jan 05, 2019, 0:18
While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be.
Apple's revised battery program began at the beginning of 2018 and lasted just one year.
Business Insider reports that the NY law firm Bernstein Liebhard has begun to attempt to gather support from Apple investors for a class-action lawsuit against the tech giant over their failure to warn investors about the lack of iPhone demand. "There's a hole in Apple's product portfolio - they do not have a low-cost smartphone to fully exploit emerging markets".
"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", said Kiranjeet Kaur, an analyst at market research firm IDC.
When it comes to the Chinese market, where Huawei is the leading smartphone choice, Apple is now coming to terms with its decline.
Wednesday was the first time that Apple issued a warning on its revenue guidance ahead of releasing quarterly results since the iPhone was launched in 2007. Apple shares have dropped almost 10% as of the time of writing, putting the tech giant on track for its worst daily loss in more than half a decade. In the broader market, the S&P 500 futures fell 1.5 percent.
Apple's move was not entirely a surprise.
Qualcomm Inc said it had posted security bonds to enforce a court order banning sale of some iPhone models in Germany, meaning Apple would likely have to pull iPhone 7 and 8 models from its 15 stores in the country. With Apple suddenly launching several new products in the quarter-including iPhones, Apple Watches, and Macs-it experienced "supply constraints" that would "gate" (slow) sales of "certain products" during the quarter.
In November, Cook cited slowing growth in emerging markets such as Brazil, India and Russian Federation for a lower-than-anticipated sales estimates for the company's fiscal first quarter. But Cook specifically said he "would not put China in that category" of countries with troubled growth.
That all came before the damage to the Chinese economy from trade tensions with the United States and long-simmering structural issues became evident.
Analysts are adding Apple's predictions and their effects to fears of an economic slowdown.
While China's economy is undoubtedly a big challenge for Apple, possibly more challenging in the long run will be users' attitudes toward smartphone upgrades. [MKTS/GLOB] Developments in a patent dispute between Apple and Qualcomm in Germany also rattled investors.
Apple cut its revenue forecasts for the key end of year quarter late Wednesday, citing the unforeseen "magnitude" of the economic slowdown in China.
Others advised Cook to stop pointing the finger at China, and instead fix the flaws in Apple services and work on new products.