After Apple’s announcement (NASDAQ: AAPL) of its forecast to lower its revenue from the lower sale of iPhone, its shares in the stock market plummeted. Apple shares fell to their lowest point since July 2017 on January 2, boosted by an alarming drop in demand for China’s iPhone and iPad, whose economy is eroding.
At mid-session, the technology shares fell 8.6%, spreading not only to the US stock market but to global markets. Apple warned that its quarterly results are below expectations, in part because of the slowdown in China’s economy. Apple shares (AAPL) fell 9% on January 2, after CEO Tim Cook downgraded the company’s quarter outlook and said he would lose his rest-quarter revenue projections in at least $ 5 billion.
The “economic slowdown” in China’s alarms in a serious letter to investors, Cook expressed surprise at the consequences that the Chinese economy is sinking into Apple’s results. “While we anticipate some challenges in key emerging markets, we did not foresee the magnitude of the economic slowdown, particularly in Greater China,” Cook wrote. He continued: “In fact, most of our income deficit to our guidance, and more than 100 percent of our year-to-year decline in revenue worldwide, occurred in Greater China through iPhone, Mac, and iPad.”
Tim Cook minimized the impact that his current financial problems will have on his future earnings, highlighting the company’s reputation for innovation. “Apple innovates like no other company on earth, and we’re not taking our step,” Cook promised. According to a G Market analysis, the cut in revenue forecasts raised questions about whether Apple, the icon of US firms in many parts of the world, is being punished by Chinese officials or consumers in favor of local rivals such as Huawei Technology. Cos Ltd, which faces a possible veto of its equipment by United States officials.
“The biggest issue is the slowdown of the (Chinese) economy, and then the commercial tensions that have put more pressure on it,” Cook said. The company forecast $ 84 billion in revenue for the first fiscal quarter, which ended on December 29, less than the analysts’ estimate of $ 91.5 billion, according to Definitive’s IBES data.
Apple originally had predicted revenues between 89,000 million and 93,000 million dollars for the current quarter. Apple shares have been in trouble for the last few months, as reported by Cryptomonads. Two weeks ago, AAPL launched a bearish “death cross” for the first time in three years, suggesting a sell-off is lurking just around the corner. The cross of death, which is considered a fairly accurate predictor of bear markets, appears when the short-term moving average of action crosses below its long-term moving average. On December 21, 2018, the shares were reduced to a minimum of 10 months amid reports that a German court had ordered him to stop selling some of his older iPhones because they violated a Qualcomm patent.
The Ibex-35 of the Spanish stock market closed Thursday with a slight decrease in some international markets were also shaken by an unusual sales alert technology giant Apple AAPL. Apple has now become the action of FAANG to produce a deadly cross. FAANG is an acronym of the technology stocks with the best performance in the stock market: Facebook, Apple, Amazon, Netflix and Google Alphabet. The main stock markets of the old continent concluded the session with generalized drops, due to the nervousness that has injected the reduction of the expectation of income of Apple (NASDAQ: AAPL ) and what this will affect in other technological companies.
Thus, the Fuse 100 of London fell 0.62%, the Dax of Germany lost 1.55% and the CA 40 of Paris fell 1.66%. While the Ftse Mib of Italy contracted 0.61%, the Ibex 35 of Madrid fell 0.31% and the Stoxx 600 decreased by 0.98%.