Apple blames slowing iPhone sales in China for forecast cut
However, analysts sugges the company’s high price points are part of the problem
San Francisco/Bengaluru/Shanghai — Apple on Wednesday took the rare step of cutting its quarterly sales forecast, with CEO Tim Cook blaming slowing iPhone sales in China, whose economy has been dragged down by uncertainty around US-China trade relations. The news, which comes as a spotlight grows on Beijing’s attempts to revive stalling growth, sent Apple shares tumbling in after-hours trade, hammered Asian suppliers and triggered a broader sell-off in global markets. The revenue drop for the just-ended quarter underscores how an economic slowdown in China has been sharper than many expected, catching companies and leaders in Beijing off balance and forcing some to readjust their plans in the market. “While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Cook said in a letter to investors. Apple finds itself in a tricky position in China, a key market for sales and where it manufac...
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