Apple shares have decreased at the start of trading after chief executive Tim Cook blamed a delay in China sales for falling revenues. Apple opened down 8.5% at $144.08.
The iPhone maker late on Wednesday, anticipated revenue of about $84bn (£67bn) for the 3 months to 29 December, down from an initial forecast of at least $89bn.
Investors in other companies who are dependent on Chinese sales were also worried about Apple’s warning.
Shares in fashion firms Burberry, LVMH and Hermes were all down more than 2%.
Like other consumer goods companies, the festive season is typically Apple’s strongest quarter, but revenues of $84bn would mark an almost 5% fall from the same period last year and represent the firm’s first year-on-year quarterly decline since 2016.
Cut to the sales forecast on Wednesday marked the first time Apple has revised its guidance to investors in more than 15 years.
Chief executive Tim Cook said in a letter to investors on Wednesday, the sales problems of the film were mainly in its Greater China region, which includes Hong Kong and Taiwan and accounts for almost 20% of its revenue.
He said, while we predictable some challenges in key emerging markets, we did not predict the magnitude of the economic deceleration, chiefly in Greater China.
However, he added that developed markets saw troubles as well, as fewer customers than expected chose to upgrade to Apple’s newest phones.
Copyright © 2019 Ghanalive.TV. All Rights Reserved.