Apple stock down after weak Q1 guidance

The tech company's shares fall after discouraging Q1 expectations.

Apple stock is down in after-hours trading in the US stock market after weak guidance for its first quarter (Q1) that ended in December. The news has caused the stock to stumble on Wall Street.

Why Apple has fallen

The corporation is projecting that its Q1 revenue will has been struggling since its fourth quarter (Q4) earnings were weak. The tech company had slower iPhone sales in China and that led to Apple’s sluggish sales.

The corporation’s CEO, Tim Cook, noted the troubles with China in a letter to investors.

‘While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China. In fact, most of our revenue shortfall to our guidance, and over 100% of our year-over-year world-wide revenue decline, occurred in Greater China across iPhone, Mac and iPad, ‘ wrote Cook in his letter to investors.

Cook also noted in an interview that the decreased expectations are completely because of the disappointing sales of the device.

‘If you look at our results, our shortfall is over 100% from iPhone and it is primarily in greater China,’ said Cook.

Apple lowered its expected revenue from $84 billion, less than the $90 billion projected from financial experts. Analysts are worried that the downturn in Apple's guidance could signal an upcoming downturn in the US economy and a potential bear market.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

“Managing risk, size and strategies” seminar

Join our free seminar on Tuesday Dec 10 at 6:00pm and get a better understanding of how to utilize size management when opening a trade and how to find the ideal risk/reward balance.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Change
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.