Any new product offering from Apple is unlikely to be revealed before September, when the company traditionally unveils its new iPhones. "For the moment, the market won't be able to differentiate between what's China-specific and what's Apple-related in China".
On the other hand, Cook also stressed that Apple showed considerable strengths in other areas (particularly in its cash assets: the company is now sitting on about $130 billion).
He is calling for them to move manufacturing to the USA, however. "China is the biggest beneficiary of Apple, more than us". -China trade tensions, but said the company won't "sit around waiting for the macro to change" in an interview with CNBC.
The belt-tightening in the world's second-largest economy is bedeviling global industries, including autos and designer clothing, that count on China to drive sales growth.
Economic deceleration in China had caught Apple off guard and trade tensions between Washington and Beijing were starting to hurt consumer spending on smartphones in China, Apple Chief Executive Officer Tim Cook said on Wednesday. That's $7 billion less than analysts expected.
Cook's letter rattled investors, with analysts calling it a "bombshell". More than US$4 trillion has been pruned from American equity values in the worst fourth-quarter rout since 2008.
On Thursday a local industry body, the China Anti-Infringement and Anti-Counterfeit Innovation Strategic Alliance, called on Apple to heed the court order and not 'trample the Chinese law by leveraging its super economic power and clout'.
USA government bond prices surged, sending yields to their lowest level in nearly a year, and gold and high-dividend stocks like utilities also rose as investors looked for safer places to put their money.
European markets opened lower on Thursday. Manufacturing is still growing, but at a slower pace than it has recently.
Apple fell 8.3 percent following its announcement.
Apple is still one of the most profitable companies in the world, and Cook made sure to remind investors of that.
Peak Apple Apple shares were temporarily pulled from trading on Wednesday as the Cupertino idiot-tax operation warned of lousy sales numbers on the horizon.
A Chinese court has also issued a preliminary injunction banning some Apple phones, part of a legal battle with chip maker Qualcomm Inc.
Another question mark for Apple is its 5G strategy in China, where the US firm is not expected to have a 5G-enabled phone until 2020, behind rivals like Huawei, Xiaomi Corp and Samsung Electronics. They are also dealing with higher costs for metals as a result of tariffs. Stocks in Asia closed with small losses.
Overall, export growth decelerated to 5.4 percent over a year earlier, less than half October's 12.6 percent rate. Services generated $10.8 billion in revenue for the quarter - a 27 percent increase from a year earlier. Both were large moves. Best Buy Co. fell 3.8 per cent while Target Corp. slid 1.2 per cent.
Gold climbed 0.8 percent to $1,294.80 an ounce.
In other commodities trading, wholesale gasoline rose 1.8 percent to $1.35 a gallon and heating oil climbed 2.4 percent to $1.74 a gallon.