Washington
\nApple acknowledged that demand for iPhones is waning, confirming investor fears that the company\u2019s most profitable product has lost some of its lustre.
\nThe reckoning came in a letter from Apple CEO Tim Cook to the company\u2019s shareholders released after the stock market closed on Wednesday.
\nCook said Apple\u2019s revenue for the October-December quarter including the crucial holiday shopping season will fall well below the company\u2019s earlier projections and those of analysts, whose estimates sway the stock market.
\nCook traced most of the revenue drop to China, where the economy has been slowing and Apple has faced tougher competition from home-team smartphone makers such as Huawei and Xiaomi. United States President Donald Trump has also raised new tensions between the US and China by imposing tariffs.
\nOn more than $200 billion in goods, although so far the iPhone hasn\u2019t been affected directly.
\nChina\u2019s \u201ceconomy began to slow there for the second half\u201d, Cook said during an interview with CNBC on Wednesday afternoon. \u201cThe trade tensions between the United States and China put additional pressure on their economy.\u201d
\nCook also acknowledged that consumers in other markets aren\u2019t buying as many of the latest iPhones, released last fall, as Apple had anticipated a factor that could stem from a starting price of $1,000 for Apple\u2019s top-of-the-line iPhones.
\nApple\u2019s stock plunged seven per cent to $146.40 in Wednesday\u2019s extended trading. The shares had already fallen 32 per cent from their peak in early October when investors still had high hopes for the new iPhone models.
\nApple\u2019s troubles may have ripple effects on other technology companies, given investors have been bailing on the industry in recent months. The tech-driven Nasdaq composite index now stands 18 per cent down from its record closing high reached in August.<\/p>\n","protected":false},"excerpt":{"rendered":"
Washington Apple acknowledged that demand for iPhones is waning, confirming investor fears that the company\u2019s most profitable product has lost some of its lustre. The reckoning came in a letter from Apple CEO Tim Cook to the company\u2019s shareholders released after the stock market closed on Wednesday. Cook said Apple\u2019s revenue for the October-December quarter […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-43789","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n