Photo by Xinhua/Sipa USA

Apple Sales Warning Jolts Financial Markets

iPhone Struggles in China

KCBS Radio Morning News
January 03, 2019 - 6:42 am

CUPERTINO (KCBS Radio) -- Apple executives called an "all-hands" meeting for employees on Thursday, a day after issuing a letter to investors warning of lower-than-expected revenue for the company's most recent quarter.

Apple CEO Tim Cook said the company would  end the quarter with $84 billion in revenue,  down more than 7 percent from the $89 billion to $93 billion forecast the company predicted three months ago.

It marked the first time in more than 15 years that Apple lowered a previously-issued revenue forecast.

Cook put the spotlight for the shortfall squarely on China. "Lower than anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline," Cook wrote.

The Apple report sent reverberations through financial markets. The company;''s share opened Thursday trading down more than 9 percent.  After reaching a peak market value of over a trillion dollars in early October, Apple has seen its market value decline to less than $685 billion.