Apple’s New iPhones Aren’t Selling As Well As They Hoped, Blames China

The times, they are a-changin’

Apple rarely sends out open letters to its investors revising its guidance for its expected profits for Q1 of this year. That’s a big deal, since Apple is one of those companies that is big enough and does well enough that their products rarely have trouble selling. But rough waters in several regions, specifically, China, has prompted the company to reduce its expected revenue for the first quarter of Q1 from $89 billion and $93 billion down to $84 billion. That’s a stark contrast to the company’s reported $88.3 billion in revenue for Q1 of 2018.

Apple is blaming lower than anticipated revenue from China as the main reason for the lower than expected profits, though Apple CEO Tim Cook also cites iPhone revenue decline in some developed markets as the reasons why they’re not making as much money as they expected.

The Chinese market has steadily been moving away from iPhone devices, thanks to a plethora of domestic powerhouses offered by companies like Huawei, OPPO, vivo and Xiaomi. President Donald Trump’s trade war with China may likely also be a factor in reduced sales as well.

There’s a bright side in all of this: despite the lower profit, Apple’s other devices outside of iPhones (Services, Mac, iPad, wearables/Home/Accessories) combined to grow almost 19 percent year-over-year.

You can read the whole guidance letter by Apple CEO Tim Cook here.

John Nieves

John is a veteran technology and gadget journalist with more than 10 years of experience both in print and online. When not writing about technology, he frequently gets lost in the boonies playing soldier.

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  1. I didn’t know that they were nationalistic, I tend to believe the japanese are more nationalistic. When the US had Canada arrest Huawei’s cfo in canada.

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