Apple shares sink as iPhone sales figures slashed

Apple shares sink as iPhone sales figures slashed

Apple shares sink as iPhone sales figures slashed

Apple's announcement late Wednesday struck a raw nerve with investors, who have been dumping technology and other stocks in recent months out of fears of a slowdown in the global economy, particularly China.

Late past year, investors became anxious that the trend was about to worsen when Apple said it would stop reporting how many iPhones it had sold. "iPhone, in particular, was very strong double-digit growth there".

But the uptick didn't continue.

According to a letter from Cook to shareholders on Wednesday, the company expects to report revenue of $84 billion for their first fiscal quarter, which ended in December. Blaming mostly macro headwinds, he failed to admit the launch of new iPhones haven't successfully lured consumers and acknowledge growing competition from domestic players.

"As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed", he wrote. It is also due to the fact that customers are no longer willing to pay more when they can buy a comparable product from Huawei.

The price gap is one reason Huawei surpassed Apple in smartphone sales from April through September previous year to seize the No. 2 spot behind industry leader Samsung, according to the research firm International Data Corp. Trade tensions between Beijing and Washington have also intensified with tit-for-tat tariffs.

Like other luxury brands, Apple's sales are largely tethered to the Chinese economy - which began to slow in the second half of 2018.

Twitter has met Apple's troubles with derision, with many pointing out that new models are massively overpriced while hardly being technological breakthroughs. In typical Trump style, the U.S. president somehow said that Apple's growth has been incredible since he came into power.

President Donald Trump is chiming in on Apple's sales warning earlier this week, which led the company's stock to drop. In China, there were less than 100 million smartphone shipments in the first three months, and the second quarter saw a 5.9% year-over-year decline.

In the letter, he admitted that fewer people were locked into the route of automatically upgrading their iPhones for whatever price Apple demanded.

Samsung, a rival phonemaker, fell 3 per cent, while luxury companies Burberry and Kering, the owner of Gucci and Yves Saint Laurent, both slid around 3 per cent.

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