Apple officials have warned that revenues between January and March will be billions of dollars less than what analysts had predicted, alarming investors with their pessimistic sales in the important Asian region.
Apple’s first fiscal quarter had outstanding financial success, but it was overshadowed by the negative market reaction.
The software giant easily above analyst projections in the three months leading up to December 30th, reporting sales of $120 billion (£94 billion) and earnings per share of $2.18 (£1.71).
The chief financial officer of Apple has issued a warning, stating that revenue for the current quarter will be at least £5 billion (£3.9 billion) less than it was for the same period last year.
Given that iPhone sales in China, a significant market, fell short of analysts’ projections by $3 billion (£2.35 billion), attention is focused on this market.
The most recent findings will heighten worries that customers are moving away from Apple and toward foldable smartphones and gadgets manufactured by regional rival Huawei.
Apple CEO Tim Cook acknowledged that the Chinese smartphone industry is the most competitive in the world in a Reuters interview.
Nabila Popal, an IDC analyst, stated: “In China, Apple is facing more competitive challenges not only because of Huawei but also because of foldables, which is a very popular and fast-growing segment in China – and as we all know, Apple does not have a foldable device – yet.”
