The broken clock pundits are working overtime on Thursday morning following a grim earnings warning that Apple issued on Wednesday afternoon. After all these years of claiming that Apple’s iPhone sales were doomed to collapse, the company finally ran into some serious trouble last quarter as growing tensions between the US and China apparently took a big bite out of iPhone sales. Apple relies on the iPhone for the bulk of its revenue and profit each quarter, so sliding sales inevitably have a huge impact on the company’s performance.
According to the revised guidance the company issued on Wednesday afternoon, Apple now expects to report $84 billion in revenue for the fiscal first quarter, down from the $89 billion to $93 billion range Apple initially provided last October. That’s an on-year decline of nearly 5%, so investors are obviously not happy. Apple shares were trading down more than 9% in Thursday’s pre-market session.
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Read Tim Cook’s full memo to Apple employees following the company’s grim earnings warning originally appeared on BGR.com on Thu, 3 Jan 2019 at 09:28:45 EDT. Please see our terms for use of feeds.
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