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| Apple Slashes Revenue Forecast, Admits Weak iPhone Sales |
Apple has admitted that they anticipated some challenges in emerging markets, but they failed to predict “the magnitude of the economic deceleration, particularly in Greater China.” The company also noted that over 100% of their year-over-year revenue loss was recorded in Greater China across iPhone, Mac, and iPad.
The tech giant also expressed its disappointment over its weak iPhone revenue. They explained that some customers took advantage of cheap iPhone battery replacement than upgrading to a new iPhone.
In fact, iPhone upgrades were not as strong as they thought even in some developed markets.
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“While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be. While macroeconomic challenges in some markets were a key contributor to this trend, we believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements.”
With this, Apple has reduced its Q1 revenue prediction to only USD 84 billion from its initial forecast of USD 89 billion to USD 93 billion. Meanwhile, the company still believes that they will have a better performance in China in the future.
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Source: Apple