Apple warns on Q1 results

[mahatmakanejeeves]

Source: CNBC

Apple warns on Q1 results

Steve Kovach @stevekovach

https://twitter.com/stevekovach

Published 10 Mins Ago Updated 1 Min Ago

Apple has lowered its Q1 guidance in a letter to investors from CEO Tim Cook Wednesday.

Apple lowered revenue guidance to $84 billion, down from the $89 to $93 billion it had previously projected. The company lowered gross margin to about 38 percent from between 38 percent and 38.5 percent.

Apple stock was halted in after-hours trading just prior to the announcement. Trading will resume at 4:50 p.m. Eastern.

Here's the full letter from Cook to investors:

To Apple investors:

Today we are revising our guidance for Apple's fiscal 2019 first quarter, which ended on December 29. We now expect the following:

{snip}

This story is developing. Check back for updates.

Read more: https://www.cnbc.com/2019/01/02/apple-warns-on-q1-results.html

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Full disclosure: I own some.

I do not ordinarily report on the outlook for individual companies, but AAPL's impact on the market is sizable.

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Rick Wilson Retweeted

https://twitter.com/TheRickWilson

The Pippin is BACK

Link to tweet

First quarter guidance down significantly. blames China and surrounding region.

Link to tweet

and:

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Jan 1, 2019, 09:30 pm

Apple Warned iPhones Have A Serious Problem

https://www.forbes.com/sites/gordonkelly/2019/01/01/apple-iphone-xs-max-xr-upgrade-price-cost-sale-new-iphone-8/#63e520c2eeed

Gordon Kelly
Senior Contributor
Consumer Tech
I write about technology's biggest companies

We know Apple AAPL +1.07% has plans to redesign the iPhone but, with official price cuts deepening, new information has warned the range has serious problems...

In a report to investors obtained by Reuters, US financial services giant Citi Group has delivered a stark warning to Apple that its iPhones in general, and iPhone XS Max in particular, are in trouble.
....

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It's dropping:

https://finance.yahoo.com/quote/AAPL?p=AAPL&.tsrc=fin-srch

[cstanleytech]

1. Not surprised to be honest. After all by now most people have smartphones and while

the latest apple phones look nice they are extremely pricey.
If they want to grow they are going to have to come up with a phone that is affordable by more people.

[exboyfil]

3. I detected a note of desperation in the smart phone

ads I watch during football games and The Walking Dead (the only times I ever watch regular TV).

I look at my $25 Smartphone and $6/mo. plan, and I wonder why folks are spending so much money. Maybe they are asking that question as well.

I am also committed to my wife and myself to go down to one car. It has been working with my daughter using my car. I get the same feel with the car ads (who needs a camera on the roof???).

[YOHABLO]

5. iphones are marketed to the younger millennials. It's about quality of course. But status rules.

Older folks want quality with less 'bells and whistles'.

[democratisphere]

2. So who will build the better mouse trap next?!

This should have already been anticipated and certainly predicted.

[exboyfil]

4. Find a way to get a cheaper credential to get yourself a job

That would sell like hotcakes.

Find a way to plat and build economic housing that only costs 2x a median salary.
That would also sell like hotcakes.

Find a way to reduce your medical expenses (AI with robots?/sophisticated diagnostic tools tied to your smart phone/way to get pharmaceuticals cheaply)
That would sell like hotcakes as well.

I don't need a camera that gives you a 3D image. I don't need a 4K TV. I don't need a bunch of cameras, lane detection, smart car.

[Hav]

6. The last I heard, and I don't follow them much at all,

they tried to combat a decrease in sales first by not being transparent about their sales numbers anymore, and secondly by increasing the prices. So while this development could have completely different reasons, it isn't really surprising to me.

[cstanleytech]

7. Their biggest problem is their pricing and thats whats hurting growth.

After all the majority of people in this country simply do not have 800+ to pluck down for a new phone and why should they when they can spend 200 or less for a phone that will do much of what the iphone can do?
For example, I spent 170 for a Samsung J7 last year and for me it does everything I need and while I certainly would love to have one of the newer iphones I could not justify the cost even if I had the money.