Apple CEO Tim Cook published a letter to investors today about warning of weaker than expected first-quarter results, quoting "fewer iPhone upgrades than we expected." The weakened demand came mainly from China, although Cook notes that "in some developed markets, iPhone upgrades were also not as strong as we thought they would be."
People just don't buy as many new iPhones as Apple hoped  In his letter, Cook offers several explanations for the lower earnings guide: Earlier the launch of the iPhone XS and XS Max compared to the iPhone X, the strength of US dollars, delivers limitations due to the number of new products Apple released in the fall and general economic weakness in markets. But the core problem is still simple: people just don't buy as many new iPhones as Apple hoped.
Per Cook's letter: "Lower than expected iPhone revenue, mainly in Great China, accounts for all our revenue shortages to our guidance and for much more than our entire full-year sales." Cook notes that other Apple departments have actually increased with Almost 1
9 percent year-round, but the truth is that the iPhone has long been Apple's core business, and if Apple can't sell enough of them, the whole company is struggling.
In an interview with
with CNBC Cook elaborates on the signature, pointing out that "the US-China trade tension puts additional pressure on the economy," resulting in fewer customers. But Cook also mentioned fewer carrier subsidiaries on new iPhones, as well as the dramatic lowered battery replacement cost for older models (due to Apple's iPhone downtrend from late 2017), as contributing factors.
Overall, Apple's revised Q1 guidance forecast falls by up to $ 9 billion in revenue over its original estimate. Apple's stock fell by almost 10 percent when trading resumes.