The electronic devices giant Apple has issued its press release containing the information about the company’s earnings in the first quarter of 2019. Surprisingly for all, the digits turned out much lower than expected.
While the original revenue expectations for the Q1 of 2019 were between 89 and 93 billion dollars, the actual profit fell considerably to 84 billion.
“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China. In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad,” reads the press release.
Among the reasons for such a recession, Apple named difficulties with some developing markets, few upgrades for IPhones and other devices, limited supply of products, the recent release of new IPhone models and others.
As for the catastrophic situation with China, the reduction of profits could have been influenced by a couple of factors: firstly, the trading sanctions between China and the US; secondly, the quickly developing Chinese electronic devices companies, like Xiaomi and Huawei.
However, Apple still remains optimistic, saying “despite these challenges, we believe that our business in China has a bright future.”
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