Mikey Campbell
Apple on Wednesday said it will report quarterly earnings for the first quarter of 2019 on Jan. 29, when company executives are expected to detail a a rare revenue forecast cut on the back of weak iPhone sales.
The quarterly earnings report will be followed by a conference call set for Tuesday, Jan. 29. at 2 p.m. Pacific, 5 p.m. Eastern, Apple said in an update to its Investor Relations webpage.
CEO Tim Cook and CFO Luca Maestri are anticipated to take part in the call that should provide detail on Apple's recently revised revenue expectations.
Earlier today, Cook in a letter to investors said Apple is on track to generate $84 billion in revenue for the important first fiscal quarter of 2019, down from original expectations of between $89 billion and $93 billion. The reduction is being blamed in large part on weak iPhone demand in China and unspecified emerging markets.
"Lower than anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline," Cook said.
Specifically, Apple failed to foresee a deceleration in China's economy that was in part spurred on by increased trade tensions with the U.S.
Beyond macroeconomic factors and U.S. dollar strength-related price increases, Cook blamed the revenue miss on miscalculated upgrade demand. In particular, the executive said low-cost battery replacements and fewer carrier subsidies are hindering the usual upgrade cycle.
Apple has not lowered guidance for a current quarter in more than 15 years.
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26 Comments
HAHA. Looks like people are starting to wake up and refusing to pay these outrageous prices just to keep Cook's sky high profit margins going. At least I hope that's the case. So crazy to spend 1k or more on a damn phone!
Given the beating that they have taken in the past month, I would have thought that this is largely priced in now, and then some. This is the statement from the horses mouth that confirms what we've been hearing rumors of. Apple has proven to be very solid in their quarterly estimates over many years, so to have a miss that requires this kind of action shows that even they were surprised by the escalating trade tensions. But any assurance from this President about what is or isn't on the table is pretty worthless. Add to that the arrest of the Huawei executive in Canada and the resultant backlash, circling of wagons, etc. and this storm isn't anywhere near over yet. A crisis of our own making, handled badly.
And with regards to the $29 battery program and it's impact, an anecodotal report from Monday morning at the Apple Store in University Village in Seattle - there was a wraparound line of people waiting to get in, as it was the last day to take advantage of the offer. Glad to put that behind us!
$89 billion down to $84 billion. Pennies.
Yet their stock took a huge hit.
Notice they reduced revenues, which everyone should have expected and the stock as a result has dropped about 30%, but they still expect record earnings, much more important than revenues.
Also notice revenue is falling 10% from projections, but the stock has fallen already by much more.