“Apple has lowered its Q1 guidance in a letter to investors from CEO Tim Cook Wednesday,” Steve Kovach reports for CNBC. “Apple stock was halted in after-hours trading just prior to the announcement, and shares were down about 8 percent when trading resumed 20 minutes later.”
“Apple lowered revenue guidance to $84 billion, down from the $89 to $93 billion it had previously projected,” Kovach reports. “The company lowered gross margin to about 38 percent from between 38 percent and 38.5 percent. ‘If you look at our results, our shortfall is over 100 percent from iPhone and it’s primarily in greater China,’ Cook told CNBC’s Josh Lipton in an interview Wednesday. ‘It’s clear that the economy began to slow there in the second half and I believe the trade tensions between the United States and China put additional pressure on their economy.'”
CNBC’s Josh Lipton sits down with Apple’s Tim Cook on the company cutting first-quarter revenue forecasts.
Read more in the full article here.
MacDailyNews Take: Dance, Tim, dance!
The good news: This too shall pass.
SEE ALSO:
Apple CEO Tim Cook issues public letter to investors, lowers guidance – January 2, 2019
There’s a limit to how much you can rip customers off and AAPL just discovered it.
Now where’s that Mac Pro?
Pipeline has AAPL stocks in free fall. -8% when I last checked.
😂😂😂
Um… that’s not exactly what’s going on with the Chinese ecobee nomy right now, but okayeee…
A mix of things are responsible for this but certainly squeezing profits from present upgraded products is certainly one of them. The degree of world trade problems and naive bully big bollock trade wars, negative effects may be greater than anticipated but the fact was pretty precictable what with added to those trade wars bland or slow updates, delays and quality issues, satuated iPhone market and slow introduction of new products, It has been building up for years now in all honesty. Cook has just been twiddling too much as it has and ignored the warning signs. Or maybe he just isn’t up to the job now, though not sure who at Apple could do better based on what we see.
How much of that miss could have been saved if they had shipped:
1) Airpower – I KNOW its small but they would have sold a TON of them over Christmas.
2) New AirPods with improved battery and multiple colors. You know they have them ready…would have sold all they could make.
3) Obviously a new Mac PRO – seriously at this point they are just messing with us.
4) The updated iMac that I have been waiting for over a year for dammit.
Airpower is dead. The reason it remains vaporware is twofold: Apple can’t get it to work as advertised, and they refuse to sell products that don’t habe a 40% profit margin. So for a stupid wireless Qi platter Apple would want to charge you $100 for something that costs $35 anywhere else.
you can buy a charger and overpriced Lighting cable for even less. The ones included in the box (unchanged for years) cost Apple a few dollars from their Chinese supplier.
What users do want are PERSONAL computers that outperform the current competition, with all the features and quality they enjoyed in the previous generation Macs, without the insane price gouging. Cook has never delived that, EVER.
“The good news: This too shall pass.”
What makes you think Trump’s trade war against China will pass? It could well escalate and last for years, possibly evolving into a hot war. Anybody who flippantly thinks the trade war with China is a quickly passing event doesn’t understand where China/U.S. relations are right now, or what U.S. foreign policy towards China is.
For example, China is pressing to reunify Taiwan right now — Xi just spoke of its importance and timeliness. U.S. foreign policy views that as a reason to intervene militarily on Taiwan’s behalf, and indeed already is planning to ramp up weapons sales.
Apple continued reliance on China to bolster revenue is fraught with peril.
Future sales maybe, but none of these current sales were affected by anything TRUMP.
The trade war and tariffs started in early 2018 and have been accelerating all year. Of course it’s affected sales. And a distinct animosity towards and boycott of Apple products is building in China.
As a long time user of the Apple ecosystem the simple fact is that Apple products are simply too expensive. I understand the value for money argument but at the end of the day it’s the money going out of your pocket that matter.
Economics is the science of the choice between alternatives- Apple are pricing themselves out of their mainstream marketplace.
What ecosystem does Apple have that Android doesn’t? it sounds so stupid, Instead of dumb-ass making his diamond ring, and their stupid headquarters, they should have been making real products, how about modeling after Google and Amazon, damn when AMAZON technology is ahead of Apple, with key products that Apple should have owned the market years ago, its pretty sad, a few years ago, Amazon only sold books, but fucking went for it, Timmy is worried that transgender mental cases are not offended by their own mental disorder, I’m tired of it, FOCUS on your real PRO customers! If I heard of so much as one employee at that spaceship doing yoga during the day, I’d kick their skinny little ass. WORK you MULES. Jobs would be breaking windows.
Hope this doesn’t mean there is more pain ahead…as in a recession.
Please pass the Kool-Aid.
What you are watching is total market dominion by Samsung and Android, I don’t give a damn about walled gardens, and best customers, you either dominate or you don’t, Apple just gave away the edge just like when Windows 95 got it, ( and they’re back ) and how Android TOOK it, Android had the market inside of their first year out of the gates, My god, when i think of how many easy targets there are, like big business and going into search,,, Where the hell is Jimmy Iovine with ANY improvements to Apple Music? ZERO Implementation of updated macs, What’s the point. nobody reads this.
Please make the world great again Donald!
Please make the world great again Donald! (/sarcasm off)
Fixed it for you.
Absolutely, AMD, this shall pass, and it will bring big smiles back to Apple investors.
APPLE is getting hammered after hours, should be a train wreck tomorrow morning.
Being a 1 product company is a recipe for disaster. Time for pipeline to pay attention to Apple rather then his social justice warrior campaign.
How about making something besides iPhones & IPads. Perhaps computers…
Desktops laptops with upgradeable SSD’s and RAM.. Just a thought.
and routers
This news has been baked into the lower stock price for 2 months. As Cook said, most of the miss is due to China, and China is down because of trump and his stupid trade war. Until the moron is removed from the White House the whole market is going to be unstable. As a 20-year AAPL investor I’ve been through a lot of these ‘End Times for Apple’ phases. This one seems somewhat different, and that’s because of trump. Stock price will eventually recover. Best time to buy is when nobody wants to buy.
Nonsense. If this news were baked into the stock price, it would have remained unchanged upon release of the news.
Instead, shares are now -12% after hours and still falling.
You are 100% wrong.
Damn it, I was going to say to “Switched Back” that Apple isn’t ripping people off, but then I remembered that the iPad Pro comes bent ‘out of the box’.
I’d never thought I’d be saying this about Apple, but this is what happens when you put a bean-counter in charge of a visionary company, Microsoft did try is with Steve Balmer. Instead of doing the basics like ensuring the structural integrity of your product, providing updated hardware, improving your applications, and making your products simpler to use, you send out defective, expensive iPads and have the balls to tell the public, it’s ok that way, take years to update your hardware, discontinue your networking products just when high end networking products take off, fail to realize that your so called ‘pro’ iPad isn’t pro if the company that makes them can’t create pro versions of their own damn software to run on them, care more about providing updated emojis and 3 ways to show you ‘like/favorite/love’ your music (who cares-how about making it easy to complete my album on iOS without a 12 step process), creating tv shows (really!!?), and curating (social engineering) the news, I never wanted you to do for me.
Apple, get back to basics, if you weren’t wasting your money on goofing things like tv show production, maybe you could lower the price of your phones just enough to sell more and add some structure to your soft iPads.
Damn it, I was going to say to “Switched Back” that Apple isn’t ripping people off, but then I remembered that the iPad Pro comes bent ‘out of the box’.
I’d never thought I’d be saying this about Apple, but this is what happens when you put a bean-counter in charge of a visionary company, Microsoft did this with Steve Balmer. Instead of doing the basics like ensuring the structural integrity of your product, providing updated hardware, improving your applications, and making your products simpler to use, you send out defective, expensive iPads and have the balls to tell the public, it’s ok that way, take years to update your hardware, discontinue your networking products just when high end networking products take off, fail to realize that your so called ‘pro’ iPad isn’t pro if the company that makes them can’t create pro versions of their own damn software to run on them, care more about providing updated emojis and 3 ways to show you ‘like/favorite/love’ your music (who cares-how about making it easy to complete my album on iOS without a 12 step process), creating tv shows (really!!?), and curating (social engineering) the news, I never wanted you to do for me.
Apple, get back to basics, if you weren’t wasting your money on goofing things like tv show production, maybe you could lower the price of your phones just enough to sell more and add some structure to your soft iPads.
…However, I also agree there are management problems, and they do a lot of things that piss me off. Maybe twice a year they should fill the Apple auditorium with investors and customers and make Cook and others in management face us and listen to our concerns. They could be suffering from ivory tower syndrome.