The announcement, made in a letter from Cook to investors, comes after weeks of signals from inside Apple and its supply chain indicating the Cupertino, California-based company is struggling to sell the latest iPhones released in September. The flagship product earns Apple about two-thirds of its revenue, and allows the company to generate more money from attached products like Apple Watches, AirPods, and services like Apple Music.
(Jan 3): Apple Inc cut its revenue outlook for the first time in almost two decades citing weaker demand in China, triggering a slump for Asian suppliers and a wave of lower price targets on Wall Street.
Chief Executive Officer Tim Cook said sales will be about US$84 billion in the quarter ended Dec 29, down from earlier estimates of US$89 billion to US$93 billion. Apple posted sales of US$88.3 billion in the fiscal first quarter a year earlier, so the new forecast would mean Apple is reporting a holiday quarter slowdown for the first time since Cook became CEO in 2011. The news sent its stock down as much as 8.5% in extended trading.
