Apple's stock has slumped 39 percent since early October. "Apple is a great company".
Despite the disappointing numbers, Cook notes that other divisions of Apple have risen by nearly 19 percent in terms of year-over-year growth.
President Trump's latest interchange with reporters included new stock commentary, on news dominating the tech sector this week: He's not anxious about a drop in Apple's (AAPL +3.7%) stock price. Apple shares are down 9.27% in midday trading on Wednesday at $143.28.
Kevin Hassett, chairman of the White House council of economic advisers, said that United States companies selling in China would see their sales recover if the trade dispute is resolved. Apple originally forecast revenue of between $89 billion and $93 billion. On its website in China, Apple now advertises the iPhone XR for 4,399 yuan with the trade-in of an iPhone 7 Plus.
"For a while now, there's been an adage in the markets that as long as Apple was doing fine, everyone else would be OK", said Neil Wilson, chief markets analyst at Markets.com.
This represents the biggest stock market dive since 5 December when USA stocks suffered a dramatic decline; the Dow Jones fell 800 points back then due to renewed concerns over Washington's trade dispute with China and indications of a possible looming economic recession.
Anything that puts Apple's business in China at risk is a serious concern for investors. According to market researchers with IDC, "worldwide smartphone shipments are expected to decline by 3% in 2018 before returning to low single-digit growth in 2019 and through 2022". "It's going to go up once we settle trade issues and a couple of other things happen". First, as my colleague Evan Niu wrote about the smartphone market in December: "What little growth ... is left is being driven by low-priced handsets from Chinese vendors". Increasingly high prices could have also played a role. He didn't mention that Apple had priced its new models at stratospheric levels.More news: Australia vs India: Pujara's patience planted seed for Pant
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Led by the Dow Jones, U.S. stocks plunged anew on Thursday, as Apple's grim revenue guidance exerted a gravitational pull on the broader market.
The reason for that shortfall?
Apple undoubtedly has some strong competitive advantages in the marketplace. "The more data points we get, the clearer we see the extent of the global slowdown". Customers are often willing to pay a premium for a product offered by a company with a strong brand.
In an interview with CNBC Wednesday, Cook said that the company will look to shore up sales by marketing trade-ins and installment plans in hopes of reducing the sticker shock of the latest crop of iPhones, whose prices range from $749 to as high as $1,449.
Although many analysts were anxious over Apple's iPhone issues, one remains unconcerned and upgraded Apple shares to "neutral" instead of "sell." as CNBC noted.
Apple makes its product in China. LVMH and Hermes shares also fell.
While Cook tries to remain positive in his letter, it's hard to escape the fact that Apple is losing its grip at the top of the premium smartphone sector. Suppliers in Asia, including Japan Display Inc. and Minebea Mitsumi Inc., tumbled in Friday trading. -China trade tensions drove the S&P 500 Index to the brink of a bear market.