The daily business briefing: January 3, 2019

Apple lowers its revenue guidance as iPhone sales lag in China, Tesla shares drop after it announces price cut, and more

The Apple logo in Taiwan
(Image credit: SAM YEH/AFP/Getty Images)

1. Apple outlook darkens due to disappointing iPhone sales in China

Apple shares plunged by more than 7 percent in after-hours trading Wednesday after the company lowered its guidance for first-quarter revenue, citing disappointing iPhone revenue in China and President Trump's trade war. In a letter to investors, Apple CEO Tim Cook said the company's quarterly revenue would come in around $84 billion, below its previous estimate of between $89 billion and $93 billion. Cook wrote that the company had "anticipated some challenges in key emerging markets," but did "not foresee the magnitude of the economic deceleration, particularly in greater China. In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac, and iPad."

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us