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Apple Falls After Sales Warning

Apple closed nearly 10% lower after a sales warning last week. Tim Cook, in an announcement, said that the slowdown in China is affecting sales revenues for the iPhone. It's one of our single largest holdings in offshore portfolios, so we were upset.

On Wednesday, Apple said it expected revenues of about $84 billion for the last quarter of 2018, down from the previous forecast of $89 billion. Tim Cook attributed the decline to iPhone, Mac and iPad sales across Greater China, citing the recent economic slowdown and rising trade tensions between Trump and Xi.

We know that the festive season is typically Apple's robust quarter, however the new sales number of $84 billion translates to an approximately 5% drop from the same period last year and the first year-on-year quarterly decline since 2016.

The chart below shows how Apple's China business has compounded almost 20 times since the company sold its first iPhone in 2010. China still accounts for 20% of Apple's revenues, unchanged year-on-year.

Infographic: How Big Is Apple's China Business? | Statista You will find more infographics at Statista


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