Good morning! This is the tech news you need to know this Thursday.
- Apple’s made a shock announcement that it was lowering its revenue guidance for its first fiscal quarter, ending December. The company had previously told investors to expect revenue between $89 billion and $93 billion, but revised that estimate down to $84 billion.
- Apple CEO Tim Cook placed a significant portion of the blame for its slowdown on China’s economic slowdown, which Cook said was caused in part by President Donald Trump’s trade war. “We believe the economic environment in China has been further impacted by rising trade tensions with the United States,” Cook wrote.
- Apple’s surprise announcement on Wednesday sent shockwaves across the business and investing world. Amazon, Intel, Alphabet, and others all took hits in after-hours stock trading.
- The CEO of China’s dominant internet search company gave employees an alarming new year message, telling them: “Winter is coming.” Baidu CEO Robin Li Yanhong stated that economic restructuring is “as cold and real as winter to every company,” in reference to China’s slowing economic growth.
Facebook pledged to improve the quality of news on the platform, but viral sites still get the most engagement. According to Facebook-owned CrowdTangle, the list of top 10 media outlets by interactions is dominated by Unilad, Ladbible, 9Gag, and Viral Thread — outlets that trade in viral and sensational stories.
- Netflix has stopped allowing users of Apple devices to join or rejoin the streaming service via iTunes, curbing a potential $256 million revenue stream. The change allows Netflix to avoid paying Apple’s levies on new in-app subscriptions.
- Tesla tanked as much as 9.34%, to $301.49 a share on Monday, after the company missed on vehicle deliveries and cut prices for three of its models. Tesla missed on annual deliveries for the Model 3, Model S, and Model X, and announced a $2,000 price reduction for all the three vehicles in the US starting Wednesday.
- Silicon Valley venture capital firm August Capital has reportedly imploded despite recently celebrating its first close for a $250 million fund. According to Axios, LPs wobbled thanks to August’s under-performing sixth fund and changes to the partnership.
- Netflix confirmed that it’s hired former Activision Blizzard exec Spencer Neumann as its finance chief. He will replace David Wells, who has served as Netflix’s CFO since 2010.
- FCC chairman Ajit Pai thanked Congress on Wednesday for killing off net neutrality rules. “I’m pleased that a strong bipartisan majority of the US House of Representatives declined to reinstate heavy-handed Internet regulation,” Pai said.
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