In a letter to investors released yesterday, Apple CEO Tim Cook said the company expects Malaysia alongside several emerging markets to set revenue records in the just ended quarter in 2018. Other markets including Greater China posed challenges for the company, Cook said.
Apple expects to set all-time revenue records in several developed countries, including the US, Canada, Germany, Italy, Spain, the Netherlands and South Korea.
Some emerging markets namely Mexico, Poland, Malaysia and Vietnam set revenue records.
This was on the back of lower revenue guidance for the company, which is USD84 billion, down from USD89-USD93 billion initially projected.
Apple anticipated some challenges in key emerging markets in the first quarter ended 29 December 2019 but it did not foresee the magnitude of the economic deceleration, primarily in China. Trade tensions between the US and China have also put additional pressure on the economy.
Cook attributed the revenue shortfall to the company’s guidance to Greater China – a whopping 100 percent of its year-over-year worldwide decline in revenue across iPhone, Mac and iPad.
Despite these challenges, Apple believes its business in China has a bright future.
“The iOS developer community in China is among the most innovative, creative and vibrant in the world. Our products enjoy a strong following among customers, with a very high level of engagement and satisfaction,” he said.
Apple shares dropped more than 7 percent in trading after the warning, pulling other tech stocks down including AMD, NVIDIA, Skyworks and Qorvo.