Apple warns about Christmas sales, sending a value of less than $ 1 billion

Apple warns about Christmas sales, sending a value of less than $ 1 billion https://www.eresviral.com/wp-content/uploads/2018/11/Apple-advierte-sobre-las-ventas-navideñas-enviando-un-valor-inferior-a-1-billón

Apple warns about Christmas sales, sending a value of less than $ 1 billion







(Reuters) - Apple Inc warned on Thursday that sales for the crucial holiday quarter could miss Wall Street expectations, which Chief Executive Tim Cook attributed to emerging market weakness and costs. exchange 

The disappointing forecast of the world's most valuable technology company helped the shares fall to 7 percent, which subtracted approximately $ 70 billion from Apple's market value and forced that value to below $ 1 trillion. The forecast could also deepen the concerns of technology companies that suffered a sell-off after Amazon.com Inc. and Google Alphabet Inc. were parents. 

Apple said it expects between $ 89 billion and $ 93 billion in revenue for its fiscal first quarter ending in December, with a midpoint of $ 91 billion below Wall Street expectations of $ 93 billion, according to IBES data of Refinitiv. 

Cook, in an interview with Reuters, said Apple is "seeing some macroeconomic weakness in some of the emerging markets." Later, he told investors in a conference call that weak markets included Brazil, India, Russia and Turkey. Sales remained stable in the fourth quarter in India, Cook said. 

"Obviously, we would like to see a lot of growth," Cook said in the call. 

The executives said they would also stop giving the number of iPhones, iPads and Mac computers, which would cause an additional fall in the price of the shares, since sales of iPhone units were the key indicator of quarterly success.  

Withholding that number will make it impossible to calculate the average selling price of phones, another key measure. 

Apple executives said unit sales are becoming less relevant as customers buy products that include subscription services such as Apple Music.  

Apple said it would start providing data on cost of sales for its service business, an important metric for underwriting businesses. But investors reacted negatively. 

"Companies generally stop reporting metrics when they are about to change. This is not a good look for Apple, "said analyst Walter Piecyk of BTIG Research. 









A customer is under an illuminated Apple logo while looking out the window of the Apple store located in downtown Sydney, Australia, on May 28, 2018. REUTERS / David Gray



For the quarter ended in September, Apple obtained $ 62.9 billion in revenue and $ 2.91 per share in earnings, exceeding the expectations of $ 61.5 billion and $ 2.79, respectively. 

Apple sold 46.9 million iPhones in the fourth fiscal quarter, not counting analysts' expectations of 47.5 million iPhones, according to FactSet. But the average selling price of iPhones was $ 793, well above analysts' estimates of $ 750.78, according to FactSet. 

"Our concern is that there should be a limit to the power of Apple's prices," said George Salmon, analyst at Hargreaves Lansdown. "The group is now charging about $ 800 per phone, and while that helps to increase revenues despite flat sales volumes, one has to wonder how the strategy to increase price rates in a recession. Consumers begin to feel the pinch, those price tags could deter gamblers. " 

In an interview with Reuters, Cook said his caution with holiday sales was partly due to Apple's earlier-normal launch of its high-end iPhone models, the XS and the XS Max.     

Cook also said that the exchange rates would have a negative impact of $ 2 billion on Apple's sales forecast.  

Apple was not sure if it can make enough new iPhones, Apple watches, iPad and Mac models it has released in recent weeks, Cook told Reuters. Apple is widely expanding the use of its facial recognition unlocking system on iPhones and iPads, which uses special lasers produced by only a handful of providers. 

Elazar Advisors analyst Chaim Siegel said China's trade problems could make it harder for Apple to get the supplies it needs. "As for the slowdown in emerging markets, that is also a contagion from China." Both trade war issues come true, "he said. 

But Cook said Apple was happy with its performance in China, where revenues increased 16 percent to $ 11.4 billion, the fifth consecutive quarter in which the company has seen double-digit growth in the region. 

Apple's cautious forecast could accelerate investor fears that, in turn, have eliminated stock market gains for much of the year. At the close of the market on Thursday, Apple shares had risen more than 25 percent in the year, supported by Warren Buffett's purchases and a share buyback program of $ 100 billion, while the Nasdaq Composite index is almost flat for the year.     

Apple said service revenues, which include iCloud, App Store and Apple Music, reached $ 10 billion, in line with analysts' estimates. Apple investors have increasingly focused on the growth of the company's services business as consumer markets become saturated with smartphones. 









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Apple predicted a tax rate of 16.5 percent for the December quarter, above analysts' expectations of 15.9 percent, according to Refinitiv's IBES data. 

For the full fiscal year ending in September 2018, Apple reported revenues of $ 265.6 billion and earnings of $ 11.91 per share, surpassing analysts' estimates of $ 264 billion and $ 11.79 per share. 





Report of Stephen Nellis in San Francisco; Additional reports from Sonam Rai in Bengaluru; Edited by Peter Henderson and Lisa Shumaker





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