Apple opens new chapter as iPhone sales fall and stock sinks

Top Apple analyst says that the worst will be over soon for the iPhone

Apple opens new chapter as iPhone sales fall and stock sinks

Apple's warning was its first in more than 15 years.

Apple's original revenue guidance for Q4 2018 fell between $89 billion and $93 billion but was revised downward to $84 billion in a letter from CEO Tim Cook to shareholders that was released on January 2, 2019. Quarterly revenue in Greater China was $13.1 billion, down from almost $18 billion one year ago. Analysts, meanwhile, were anticipating revenue to fall in the $84 billion range with EPS somewhere around $4.17.

Apple Inc on Tuesday reported sharp growth in its services business and Chief Executive Tim Cook said trade tensions between the United States and China were easing, helping its shares up even after sales of its iPhone dipped in the holiday shopping quarter. In essence, it's trying to tweak the thinking of investors used to paying attention to iPhone sales on a quarter-by-quarter basis. Oh yeah, amusing thing about that.

What's different now is that Apple is no longer disclosing how many iPhones it shipped after the quarter is completed, a change that Cook announced in November. What's more, seeing as how iPhone releases have been staggered over the past two years, year-over-year quarterly comparisons are far less instructive than in years past. It ultimately forced Apple to delay Mac Pro sales for several months, according to the report. That would be a year-over-year decline of about 4 percent.

The company's Services segment, which includes Apple Music and iCloud, posted revenue of $10.9 billion. Revenue from Mac and Wearables, Home and Accessories also reached all-time highs, growing 9 percent and 33 percent, respectively, and revenue from iPad grew 17 percent. In the call, Tim Cook noted that Apple was looking at pricing iPhones according to local currencies in China and other countries, rather than pegging them to the U.S. price.

The tech giant provided second-quarter revenue guidance of between $55 billion and $59 billion, down from more than $61 billion one year ago.

Apple's board of directors has declared a cash dividend of $0.73 per share of the Company's common stock.

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