Why is Apple going to & # 39; China was blamed for selling collapse (and how true these allegations are)



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Apple confirmed a Wednesday news bulletin for investors: who sells a huge drop (even more than expected). And, according to the US name, China is corrupted.

This was said by Apple Director, Tim Cook, in an amazing exhibition in which he expected income from $ 84,000 million for the last quarter of 2018, which closed on 29 December.

And this is the first time in more than 15 years that a & # 39; company investigating economic results for investors.

fall of activities

The Christmas season is the fourth most successful for Apple. However, the expected income for this year is almost 5% less than last year's same and, accept it The first seasonal drop of the company since 2016.

After being named Cook, Apple fell 7.7% in just a few hours, expanding to 28% from November.

"Economic cure"

In the letter to investors, Cook said that there are the problems that he has at the moment. Company is largely due to China, a division in which it accounts for 20% of its income.

"Although we expect some challenges in emerging major markets, we did not expect market level Economic healing, especially in China, "he said.

However, he said they had difficulties in improved markets, because they chose smaller customers than expected to update their iPhones.

No doubt, The sale of iPhones is falling. And some of the researchers say Apple's new fall has shown a unique problem with the technology company. hauling for a while.

Tim Cook, Head of Apple. "Width = height =" 624 "= = 351

Apple leader, Tim Cook, was blamed on the "economic pull" of China to declining sales.

"Uncertainty"

Cook's letter appears to confirm doubts about what's expected to be at. a company that has disturbed its investors over the last few months and that is seen when it fell into the stock market.

The cuts made by some major suppliers were disturbing and they were surprised if the latest cell phones were made by their company they did not attract enough to your merchants, partly due to their high prices.

"The questions of the investors are the extent to which Apple's amazing prices have declined this situation and what that means for to power prices on long-term iPhones, "said James Cordwell, an Equities Atlantic analysis for the BBC.

The company warned investors already in November that strengthening the dollar and economic weakness in some foreign markets would have been in place; sell a pity in the last quarter of the year.

Some analysts also said Apple is likely to affect itWar between the United States and China, in some due to b & # 39; Chinese traders can switch to national brands instead of Americans.

And the other cheapest options, as Oppo, Huawei and Xiaomi They are getting better.

Apple Graphics

"After the iPhone 8, technological advances became a great deal, so consumers encouraged the purchase of a new iPhone," said analyst Sam Reynolds, based in Taiwan, to the BBC.

Reynolds argues that Android phones such as Pixel Google, Oppo's Flagship-X, not Huawei's P20 Pro "are just more exciting materials for that price."

However, Apple says in his letter that the trading problems that hurt consumers' confidence.

"As the weather uncertainty of growth It sits on financial markets, it also appears that the effects are also accessible to users. The activity in our stores and our partners in China allowed the fourth quarter, "Cook said.

He also explained that Apple is making steps to trade his phones in his / her; that part of the world, and that other parts of the industry are still strong in the region.

"Although he is unhappy to investigate our output rehearsal, our performance has shown in many amazing strength areas despite those challenges," said Cook.

Analysis: David Lee, a technology writer for North America

You can summarize what Cook said to investors: some things are under Apple control … and others are not.

China's economic reality – where growth grows slower – is & # 39; means Apple has an area that does not have much reliance for winning new customers that it will not give it more. If we add to the trade war between China and the United States, things can only go out.

Very little Cook can do to protect Apple's business, but only to use help groups to influence them. And that's already done.

But something more important is that it is important in everything. An golden age of smartphones, when Apple made the richest company in the world, coming to an end.

This is not new. But it's happening faster than Apple's expectation.

Improved tools, with more stable and more reliable batteries, can cause people to be unhappy to update cell phone and ask, "What's new from the latest iPhone model?" Not much Not enough

Will Apple have other products and services enough to maintain its position in the market?

The company has a & # 39; trying to diversify for time with products such as Apple Watch and rapidly growing cloud services, but are not far from hitting the iPhone's success.

Some respondents are now expecting their & # 39; The company is a major contributor to investors to achieve their confidence.

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