Apple suppliers take a hit after iPhone sales slump warning

Apple suppliers take a hit after iPhone sales slump warning

Apple suppliers take a hit after iPhone sales slump warning

In 2018, Apple (NASDAQ:AAPL) became the first publicly traded company in the United Statesto reach a market capitalization of $1 trillion.

Other major exporters, including heavy-machinery manufacturers and tech companies like Intel and Microsoft, also took big losses.

Forte says that in spite of the soft iPhone performance, the good news is the rest of the product portfolio is up 19 percent, and that could bode well for the future.

"This is not a catastrophe nor is it a sign that Apple is losing its grip on the smartphone market but merely a misjudgment by Apple with regard to how much money people will pay for an iPhone".

Step back from the gyrations of the moment, and there's an emerging strategy for Apple: Sell fewer iPhones and assorted devices such as Macs and iWatches at a higher price than mass-market rivals, and then flood those millions of users-who have more than average disposable income because they were able to afford those devices in the first place-with apps and content that they will pay for. "As growths in China and Eurozone have been clearly slowing, investor fears that moderating global demand will start to dampen US growth momentum", she added. Companies such as General Motors, Caterpillar and Daimler have all said recently that trade tensions and slower growth in China are damaging their businesses. There's no doubt Canada will feel the effects.

"The knee-jerk reaction is that it will influence trading", said David Katz, chief investment officer at Matrix Asset Advisors.

The company (AAPL) announced on Wednesday that investors should expect lower revenues than those projected for the last quarter because sales in China were below those anticipated. Analysts polled by FactSet had expected Apple's revenue to be about 9 per cent higher - $91.3 billion. "We maintain our belief Apple can expand its leading market share of the premium-tier smartphone market and the iPhone installed base (excluding refurbished iPhones) will exceed 700M in 2018". The Dow fell to 22,868.22.

The broader S&P 500 fell 50 points, or 2 percent, to 2,460.

Technology stocks led the declines with chipmakers and other phone part suppliers both in the United States and around the world in the red. Predictably, shares of Apple absolutely tanked as a result and are now trading at a level we haven't seen since mid-2017. Wechter Feldman Wealth Management Inc. boosted its stake in Apple by 29.1% in the 2nd quarter. In the third quarter, Huawei's premium line, Honor, grew by 14% year-over-year while sales volume of VIVO was up by 2%, data from Counterpoint Research shows. The U.S. delegation will be led by Deputy U.S. Trade Representative Jeffrey Gerrish, a Commerce Ministry statement said Friday.

It's a pity that in trying to justify Apple's financial disappointment Cook didn't offer stunned investors any better solutions than the tactics the company and its partners are already trying. According to the Apple CEO, the slowdown was exacerbated by Trump's trade war with Beijing.

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