Apple stock down after weak Q1 guidance
The tech company's shares fall after discouraging Q1 expectations.
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.
See an opportunity to trade?
Go long or short on more than 15,000 markets with IG.
Spread bet or trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
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 spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.
This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.