Apple revised its guidance for the quarter that ended on December 29. It now expects to report revenues of approximately 84 billion US dollars, having projected sales of between 89 billion and 93 billion dollars. Apple posted revenue of 88.3 billion dollars in the equivalent quarter in 2017.
In a letter to investors, CEO Tim Cook said the economic weakness in some emerging markets "turned out to have a significantly greater impact than we had projected," resulting in fewer iPhone upgrades than Apple had anticipated.
"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," Cook wrote. "China’s economy began to slow in the second half of 2018."
However, Cook also admitted that, in some developed markets, "iPhone upgrades also were not as strong as we thought they would be. While macroeconomic challenges in some markets were a key contributor to this trend, we believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements."
On a brighter note, Apple said that services generated over 10.8 billion dollars in revenue during the quarter, while sales of wearables grew by almost 50% year-over-year. Source: Apple statement