Apple Cites "Mounting Uncertainty": APPL Down 7% AH, Nasdaq Futures Down 2.3%

IMG Auteur
Published : January 03rd, 2019
281 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

Apple Blames "Mounting Uncertainty" in Rare Guidance Cut. Futures hammered.

Apple Inc. lowered its sales forecast for its fiscal first quarter, a rare revision to its guidance, blaming slowing sales of smartphones and other devices in China.

Apple Chief Executive Tim Cook said in a letter to investors on Wednesday that the company now predicts revenue of around $84 billion for the quarter ended Dec. 29. Previously the company said revenue would be between $89 billion and $93 billion for the quarter. Analysts surveyed by FactSet forecast more than $91 billion.

“Most of our revenue shortfall to our guidance, and over 100% of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad,” Mr. Cook wrote.

“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 in the letter.

Uncertainty - What a Joke

Blaming uncertainty is a joke. No one can ever be sure of economic forecasts.

Facts of the Matter

  1. Apple sells a commodity.
  2. The competition has phones that are just as good, if not better, for cheaper
  3. At some point, consumers will no longer pay for a name.
  4. At some point, consumers decided new features are not worth the price.

Only Surprise

The only surprise is how long it took to get to points 3 and 4.

Looking Ahead

5G won't be a savior. Apple could easily fall in half from here.

Expect all kinds of unexpected negative surprises in 2019.

Recession looms.

 

Source : moneymaven.io
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
IMG Auteur
Mish 13 abonnés
Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit http://www.sitkapacific.com
WebsiteSubscribe to his services
Comment this article
>Follow all commentairies
You must be logged in to comment an article8000 characters max.
Log in or Sign up
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Battle Royale
22 JanJ.-1
"Boundless rage", does seem to be a characteristic of the collectivist Left.
Coming Attractions
22 JanJ.0
You are correct, history does recycle. And it has been long enough that all those who remember first hand what the last cycle of collectivist revo...
Ecological Armageddon: “We Are Destroying Our Life Support Systems!”
19 Jankevthorne
In further support of the article's conclusions, I recommend this treatise written by Jeremy Grantham, a chief investment strategist: "The original...
Beware the "ZeroHedge Trap"
16 Janjohngaltfla@yahoo.com
Nicely done and very well written. The doom is coming but this asteroid misses Planet Earth in Q1. However, I think we are in for a substantially r...
Turbulence and Brexit Make Safer Options Like Gold and Cash Essential
15 Janallstarchuck
If investors included safe-haven assets in their portfolios possibly mistaking them for a hedge, they would potentially inflate their prices in nor...
Top Ten Trends Lead to Gold
14 JanAriana33
This is a good article, and I can agree with many points. I've been investing in gold, particularly the American Gold Eagles for quite some years n...
The Black Swan So Ugly No One Will Talk About It
14 JanS W.
A black swan is a highly improbable event. Obviously the author of the article does not understand that.
Fed’s Balance Sheet Reduction Reaches $402 Billion
07 JanRocco
Every time the FED speaks, gold skyrockets. Just buying some gold every time before the FED makes an announcement and then selling for a quick prof...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS