Apple Stock Price Plunges After Earnings Warning

Asian iPhone Suppliers May Join U.S. Slide After Apple Target CutMore

Asian iPhone Suppliers May Join U.S. Slide After Apple Target CutMore

Ives, the Wedbush analyst, said that even though he thinks most of Apple's issues are self-inflicted, "the quicker and the smoother the US-China talks get settled is good not just for Apple, but for the broader stock market".

Fallout from the Apple news also caused chip stocks such as Advanced Micro Devices, Nvidia and Qorvo to fall, along with Skyworks which dropped more than 10 percent.

While President Donald Trump's trade war with China isn't helping Apple and other USA technology companies, Ives believes Apple miscalculated by continuing to roll out high-priced phones in China, creating an opening for rivals with less costly alternatives that still worked well.

"Apple makes its product in China".

"Our revenue for Apple's fiscal 2019 first quarter, which ended on December 29, will be lower than our original guidance for the quarter", an open letter from Apple CEO Tim Cook reads.

The president downplayed the effects of the economic woes on USA technology giant Apple Inc, which this week blamed slowing iPhone sales in China for a rare reduction in its quarterly sales forecast.

"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.

Now, Apple must try to find a way to win back Wall Street's confidence and reverse a steep decline that has erased $350 billion in shareholder wealth in just three months.

Man stabbed to death on London-bound train
One passenger said there was blood all over the carriage and it was clear the victim was in a very bad way following the attack. A man has been arrested on suspicion of murder and a 27-year-old woman arrested on suspicion of assisting an offender.

Those worries, along with a weak revenue forecast from Apple, contributed to steep losses Thursday. The Nasdaq rose 2.3 percent, to 6,614.

That lifted the annual increase in wages to 3.2 percent, matching October's rise, from 3.1 percent in November.

Economic weakness in some emerging markets.

Cook blamed the lowered forecast on several different factors, including the timing of its latest generation iPhone launches, a strong United States dollar creating foreign exchange headwinds, supply constraints, and economic weakness in some emerging markets. "We were surprised about the magnitude of the miss and the negative impact of China demand for iPhones", Citi said in a note this week.

"My focus is the United States".

Traders were encouraged by news that employers ramped up hiring in December, which could allay fears about an economic slowdown. Automakers such as Ford Motor, Hyundai Motor and Nissan Motor all previously said they planned to cut production in the country. "Futures immediately sold off. Apple is a 4 percent position in the market and considered a bellwether and comments were that the US was fine, China was slower than expected". The truth remains that the iPhone has always been Apple's core business and if Apple can't sell enough of them, the whole company struggles.

Huawei recently announced that it shipped more than 200 million units past year. That growth came entirely from higher prices.

A senior White House economic adviser said he expected trade uncertainty to hit earnings at many USA companies, but that sales at Apple and others with large exposure to China would recover once Washington and Beijing strike a trade deal.

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