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.
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