Apple now forecasts $84 billion United States dollars (about $114 billion CAD) in revenue for the first quarter of 2018, a number that already sits below estimates of $91.5 billion ($124 billion CAD) based on BES data from Refinitiv, according to Reuters.
However, the nitty gritty details in that regard will have to wait and be doled out by Apple later this year when the company gets around to announcing its fiscal first quarter 2019 earnings (which will happen on Tuesday, January 29).
The company reduced its Q1 revenue estimates to $84 billion, CNBC reported, down from its initially projected window of $89 billion to $93 billion.
Most of the unforeseen drop in sales revenue is a result of economic deceleration in "Greater China", he said in an earnings call. In his letter, Cook said that more than 100% of the company's worldwide revenue decline was in China for sales of iPhones, Macs and iPads. He also said Apple is seeing fewer iPhone upgrades than expected, which partially accounted for the new guidance.
Apple will have to figure out ways to fearless macroeconomic woes like this, and that might mean learning to make more money from non-iPhone products in its catalog. Hassett says that Apple and other US companies operating in China, will see their business return in the country if the USA can have a successful negotiation with China.
"As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed", Cook added in his letter.
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Apple previously told investors to expect revenue between $US89 billion and $US93 billion.
Apple stock was halted in after-hours trading just minutes prior to the announcement.
Apple's surprise announcement added to concerns about the ability of USA companies, particularly its technology giants, to navigate an increasingly uncertain economy and a continuing trade war between the United States and China.
Lately, Apple has been offering a trade-in deal for the $749 iPhone XR that will cut the price as low as $449.
Apple has shaken the business world by lowering its sales and revenue forecast for the next quarter. He then goes on to blame several factors that are beyond Apple's control and repeatedly insists that its new products are actually succeeding so well that they've often been in short supply.
That spells trouble for companies that rely on China's enormous market to boost their global sales.