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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
