On January 2, 2019, during aftermarket hours, Apple disclosed that its revenue for the first fiscal quarter of 2019 would be over 7% lower than it previously expected due to “[l]ower than anticipated iPhone revenue, primarily in Greater China, [which] accounts for all of [Apple’s] revenue shortfall to [its] guidance and for much more than [its] entire year-over-year revenue decline.” However, on November 1, 2018 during Apple’s fourth quarter 2018 conference call, CEO Tim Cook stated that “[o]ur business in China was very strong last quarter. We grew 16%, which we’re very happy with. iPhone in particular was very strong, very strong double-digit growth there.”
On this news, Apple’s stock fell $11.97 per share, or over 7.5%, during aftermarket trading hours on January 2, 2019, damaging investors.
If you purchased Apple securities, and/or would like to discuss your legal rights and options, visit Bernstein Liebhard LLP’s “Join Class Action” page here.
Source: Bernstein Liebhard LLP
MacDailyNews Take: Not a surprising development, however we fail to see how Cook describing a previous quarter’s activity relates to a warning issued in a subsequent quarter. Apple gave guidance for fiscal Q119 based on what they knew at the time and the facts changed or became evident during the quarter, so they issued a warning prior to their earning release on January 29, 2019.
January 29th should be a fun conference call, by the way. Almost as much fun as Tim Cook will have at Apple’s annual shareholders meeting in February.
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