Several Wall Street analysts have been chopping their iPhone manufacturing forecasts in the previous few weeks amid experiences of lackluster demand for the newest fashions.
In November, Apple additionally mentioned it will now not get away iPhone gross sales.
Then got here Wednesday’s announcement, when the California-based iPhone maker lowered steerage for fiscal first quarter income and gross margin, hit primarily by “economic deceleration” in Greater China. The inventory, which has already plunged greater than 35 % from a file excessive it reached this fall, dropped greater than 7 % in after-hours buying and selling.
“We believe the economic environment in China has been further impacted by rising trade tensions with the United States,” Cook mentioned in a letter to traders.
“As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed,” he mentioned. “And market data has shown that the contraction in Greater China’s smartphone market has been particularly sharp.”
Chinese shoppers have been holding again on spending on account of uncertainty about the home economic system, however analysts say trade tensions are simply one among many different components affecting development.