After a mysterious, and unprecedented, suspension in the stock market of Apple, the company issued a statement signed by Tim Cook and addressed to its investors, which updates the financial situation of the company to report a new forecast on the profits that They expect the last quarter of 2018. Here the CEO of Apple warns that the company’s revenues will be below what they had initially thought .
This new adjustment changes from a forecast of between 89,000 and 93,000 million dollars to approximately 84,000 million dollars, which would be driven by iPhone sales that have been below what they had originally estimated .
After this adjustment in the company’s revenues during the last quarter of 2018, which closed on December 29, Tim Cook was dedicated to trying to explain this and the main reason was “less iPhone updates than we had anticipated . ” That is, low sales of new iPhone models as had been anticipated for a few weeks.
This fall in the forecast would have been driven by a low demand for the device especially in China , one of its most important markets, in addition to low sales in some developing countries, where they had initially anticipated that they would be stronger.
People are not buying as many iPhones as Apple expected.
As possible causes of all this, Cook mentions the strength of the dollar; the new launch window for the iPhone XS and XS Max, which was prior to the iPhone X and which caused sales to be divided into two quarters; less supply of components and greater logistical problems due to a greater quantity of products that are launched at the same time; as well as the economic weakness of some markets.
In addition to this, Apple also expects a decrease in revenues compared to the previous year, which means that at this time the shares of the company are falling by 7% after resuming operations during the after hours .
On January 29, Apple will release details of its financial results for the last quarter of 2018 as well as for the entire year. This conference will be very interesting, since not only will we know how the drop in sales of the iPhone affected, but it will also be the first results where Apple will not give concrete figures of sales of devices.