Apple plunges after slashing revenue guidance for its holiday quarter
- Apple on Wednesday evening cut its revenue guidance for its crucial holiday quarter.
- In a letter to shareholders, CEO Tim Cook noted iPhone weakness that primarily came from greater China.
- Apple shares were down 8% early Thursday.
- Watch Apple trade live.
Apple shares were under pressure Thursday morning, down more than 8%, after CEO Tim Cook sent a letter to shareholders warning that revenue for the crucial holiday quarter was going to come in below expectations.
The company said it now sees fiscal first-quarter revenue of $84 billion, below the $89 billion to $93 bilion that it had previously expected.
"If you look at our results, our shortfall is over 100% from iPhone, and it is primarily in greater China," Cook told CNBC.
China's economy grew at its weakest pace since the financial crisis last quarter as its trade war with the US added uncertainty to an already rocky environment.
But the writing was on the wall for Apple long before Wednesday's announcement as a handful of suppliers had warned on their outlooks in recent months.
Last month, the semiconductor manufacturer Cirrus Logic lowered its third-quarter revenue, citing "recent weakness in the smartphone market." And in November, suppliers Qorvo, AMS, and Lumentum all warned on their outlooks.
Apple's stock has had a rough couple of months, falling more than 32% from its October peak of $233.47. In August, the tech giant became the first US company with a market capitalization of more than $1 trillion. That was down to $749 billion at Wedensday's closing bell.
Apple is set to report its first-quarter results on January 29. Analysts surveyed by Bloomberg were expecting earnings of $4.65 a share on revenue of $91.25 billion before Wednesday's announcement.
