Connect with us

Business

Apple cuts sales forecast as China sales weaken; iPhone pricing in focus

Published

on

[ad_1]

SAN FRANCISCO/BENGALURU/SHANGHAI (Reuters) – Apple Inc on Wednesday took the rare step of cutting its quarterly sales forecast, with Chief Executive Tim Cook blaming slowing iPhone sales in China, whose economy has been dragged down by uncertainty around U.S.-China trade relations.

The news, which comes as a spotlight grows on Beijing’s attempts to revive stalling growth, sent Apple shares tumbling in after-hours trade, hammered Asian suppliers and triggered a broader selloff in global markets.

The revenue drop for the just-ended quarter underscores how an economic slowdown in China has been sharper than many expected, catching companies and leaders in Beijing off balance and forcing some to readjust their plans in the market.

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Apple CEO Tim Cook said in a letter to investors.

Apple finds itself in a tricky position in China, a key market for sales and where it manufactures the bulk of the iconic products it sells worldwide, after the high-profile arrest in Canada of the CFO of domestic rival Huawei Technologies Co Ltd [HWT.UL].

Since the arrest last month, at the request of the United States, there have been sporadic reports of Chinese consumers shying away from Apple products. Even before then, local rivals like Huawei had been gaining market share over Apple.

Cook told CNBC that Apple products have not been targeted by the Chinese government, though some consumers may have elected not to buy an iPhone or other Apple devices due to the firm being an American brand.

“The much larger issue is the slowing of the (Chinese) economy, and then the trade tension that has further pressured it,” Cook said.

PRICE TAG

Some analysts, however, questioned the impact of Apple’s own actions, such as its unyielding pursuit of high selling prices for its products.

“Apple sales in China have not been doing well for a few quarters now, part of the reason is that their price points have gone too high – past the $1,000 mark,” said Kiranjeet Kaur, an analyst at market research firm IDC.

“(That’s) almost three times as expensive as phones from other vendors that are filling the mass market.”

China’s smartphone market has dropped sharply this year, with Apple and South Korean rival Samsung Electronics Co Ltd leading the fall, even as some domestic peers have performed more strongly.

(Apple, Samsung lead China smartphone drop: tmsnrt.rs/2PdBGNw)

Samsung said last month it would cease operations at one of its mobile phone manufacturing plants in China, after seeing its share of the Chinese market drop to 1 percent in the first quarter of 2018 versus 15 percent in mid-2013.

FORECAST CUT

Apple on Wednesday lowered its forecast to $84 billion in revenue for its fiscal first quarter ended Dec. 29, below analysts’ estimate of $91.5 billion, according to IBES data from Refinitiv. Apple originally forecast revenue of between $89 billion and $93 billion.

This marked the first time Apple had issued a warning on its revenue guidance ahead of releasing quarterly results since the iPhone was launched in 2007.

Apple company logos are reflected on the glass window outside an Apple store in Shanghai, China January 3, 2019. REUTERS/Aly Song

Apple shares skidded 7.7 percent in after-hours trade, dragging the company’s market value below $700 billion. In the broader market, the S&P 500 futures fell 1.5 percent. In the U.S. government bond market, a typical safe-haven, the yield on the benchmark 10-year, which moves inversely to the bond’s price, sank to an 11-month low.

PRECURSORS TO A WARNING

Apple’s move was not entirely a surprise. In November, the Cupertino, California-based company said it would quit disclosing unit sales data for iPhones and other hardware items, leading many analysts to worry that a drop in iPhone sales was coming. And after several component makers in November forecast weaker-than-expected sales, some market watchers called the peak for iPhones in several key markets.

In November, Cook cited slowing growth in emerging markets such as Brazil, India and Russia for lower-than-anticipated sales estimates for the company’s fiscal first quarter. But Cook specifically said he “would not put China in that category” of countries with troubled growth.

That all came before the damage to the Chinese economy from trade tensions with the United States and long-simmering structural issues became evident.

Apple is now the highest-profile multinational corporation to warn that the economic slowdown in China could hurt its business. Automakers such as Ford Motor Co, Hyundai Motor Co and Nissan Motor Co Ltd all previously said they planned to cut production in the country.

But Apple has held firm on its premium pricing strategy in China despite the risk of a slower economy.

“The question for investors will be the extent to which Apple’s aggressive pricing has exacerbated this situation and what this means for the company’s longer-term pricing power within its iPhone franchise,” James Cordwell, an analyst at Atlantic Equities, told Reuters.

In the latest fiscal year, ended Sept. 29, unit sales of the iPhone were essentially flat from the prior year, while iPhone revenue expanded 18 percent to $166.7 billion. That growth came entirely from higher prices.

Hal Eddins, chief economist at Apple shareholder Capital Investment Counsel, said Cook’s comments on the impact of the U.S. trade tensions with China “might be a dig at (U.S. President Donald) Trump, but mostly he may be using the trade turmoil as an excuse for some missteps they’ve made over the last year.”

Slideshow (3 Images)

But some investors were heartened by Apple’s plans on using its cash pile.

In his letter, Cook said Apple has $130 billion in net cash and that it intends to continue its efforts to reduce that cash balance to net zero, which the company has so far accomplished through dividend increases and share buybacks.

“We would anticipate the company increasing share buybacks on the weakness to return capital to shareholders at discount prices,” said Trip Miller, managing partner at Apple shareholder Gullane Capital Partners.

Reporting by Stephen Nellis in San Francisco and Munsif Vengattil in Bengaluru; Additional reporting by Joe White in Detroit, Adam Jourdan in Shanghai and Sijia Jiang in Hong Kong; Editing by Leslie Adler and Christopher Cushing

[ad_2]

Source link

قالب وردپرس

Business

Independent Consultant Beginner – 6 Should Have Pieces Of It Technology And Software

Published

on

Prima Wireless Earbuds Reviewhttps://primawirelessearbuds.net/.

Many travel sites offer E-tracking. Getting keep you updated by the cheapest travel methods. You will get an alert by email if the flight in order to or previously booked has dropped in price.

An impressive media player supports several formats of both music and video clips. These can easily be in order to and from a computer by using the microUSB (v2.0).

Knowing Things That is happening in Your kid’s School – Always take contact with the teachers of the child’s degree. Try to introduce yourself and give your quantity or e-mail to construct a good communication with that company.

There are several precautions that runners should take irrespective they tend to run the particular night. It is a good idea to cover a route during the previous day running it at dusk. This will enable the runner to get an associated with any potholes or other hazards that may be more difficult to see throughout the night.

Give some thought to ones ear monitoring. You must be able to be handled by your music and Prima Wireless Earbuds Cost regarding your bands when playing live. You should determine generally if the onstage monitors will do great enough. If you’re not convinced of this then consider using headphones. This is definitely inexpensive products and solutions consider Shure EC range in ear monitoring buds.

Before packing, make a subscriber base. You can start your list anytime an individual decide to travel. By having a detailed listing of what you need, realize that some take the stress out of packing. Even if you won’t have enough time to pack until covered minute, using a list should keep you prearranged.

Watching family members head on their way to acquire a run through the night can certainly be a little unsettling. It is also a choice to tell loved ones where you’ll be running as well as how long anticipate to be wiped out. Going out for a run using a family member or friend may make everyone involved feel a touch more at level of comfort.

To handle metal detector Prima Wireless Earbuds Cost is fairly simple. All you need do is turn it on, as well as move slowly over find out what where you need to search. In most instances you will sweep the coil to and fro over the bottom in front of your when you pass across a target object then the metal detector will make an audible signal. A lot more advanced metal detectors available which convey a display that pinpoints the kind of metal that you have got detected and how deep on your lawn it is regarded as.

Continue Reading

Business

What Make Sure You Really Know Right Anyone Decide To Travel

Published

on

When traveling with children advised plan your route in advance. Do a little research and see as relevant and fun places to stop such as parks, museums or other attractions. Once you take breaks every non-chemical hours so everyone maybe even including the children probably get out and stretch their legs.

And yet their internal mechanics have improved with as of yet these people offering us much more than the mere Fm wavelengths. With their radio kit specially the newer model launched, you will get FM, AM, Internet radio, weather forecast and also TV recording.

Sony PSP – This will be the more advanced of the two in relation to Pure Pod Vibes (purepodvibes.org) specs. The PSP has a very high quality screen and can do proper sounds so may even watch free movies online on it’s. But you’ll have get the UMD movie disks and may cost replacing or additional a regular DVD. The PSP doesn’t have a a display and if you’d like to play linked games you’ll in order to be get a cable and each player need to have a copy of the sport.

Once that alarm sounds you in order to spend one hour writing down everything you just remember musing about it. You can then go back to sleep, but make particular command yourself to continue exact same way dream. Since REM state is one of the most state for dreaming, technique stretches against eachother and helps to make this more effective for lucid dreamers.

Departure time is extremely important. Leaving early am is a proficient plan. Your offspring will be tired and possibly sleep vehicle for the first part of the trip in any case.

Entertainment electronics cut in again. Modern airlines provide small TV in the back of the seat even for economy class, or Pure Pod Vibes superb hanging away from the ceiling, which are usually difficult towards your kids to ascertain if they’re not sitting within corridor outside. If you don’t have that type of luxury, a camcorder with headphones will have the desired effect. Modern camcorders have a little flat screen, so its possible to use because a mobile TV/VCR combine. For older children, a laptop with a DVD-player are able the job as so. But keep in mind to charge the batteries up to now!

Skateboard Parks: The best shop to do skateboarding in at a skateboard city park. They are safer places to skateboard because they remove associated with posed by motor all together .. The ramps are well constructed, the park is in the main free of debris; there is ample lighting for night professional skateboarding. Follow the park rule and traffic flow, skate the four foot ramp, then the six, after that your eight. I know it sounds like common sense, but sometimes boarders enter into “their zone” and Pure Pod Vibes Reivew Pod Vibes Reviews forget what’s natural. That takes us back to the ‘Keep your focus strategy. You always have to be know.

Continue Reading

Business

Majority of Canadian workers willing to take less pay for a workplace pension plan: survey

Published

on

By

A majority (70 per cent) of Canadians say they’re willing to forgo a higher salary in exchange for a workplace pension plan, according to a new survey for the Healthcare of Ontario Pension Plan by Abacus Data.

The survey, which polled more than 2,000 Canadian adults in April, signals an opportunity for employers to build back the post-coronavirus pandemic working landscape better by expanding access to good retirement plans — whether they’re defined benefit, defined contribution or group registered retirement savings plans, says Steven McCormick, senior vice-president of plan operations at the HOOPP.

According to the survey, a secure retirement remains of greater concern for Canadians than concerns about their health, debt load and job security. McCormick says this has been a consistent worry the HOOPP has seen in survey results over the past couple of years. Nearly half (48 per cent) of respondents said they’re very concerned about having enough money in retirement, while 31 per cent were highly concerned about their personal debt load and 26 per cent cited their job security. Close to half of respondents expressed high concerns for their physical (43 per cent) and mental (40 per cent) health.

In addition, the pandemic has harmed the finances of more than half (52 per cent) of Canadians’ surveyed and it’s had a particularly disproportionate affect on the finances of younger adults. Adults aged 44 and younger said they’re twice as likely (25 per cent) to have had their finances greatly harmed, compared to those over the age of 60 (12 per cent).

Generally, younger adults tend to work in roles that may have been impacted most by the pandemic, says McCormick, whether in service industries that were shut down or frontline health care that have been busy but don’t always come with access to a pension plan. “Affordability is an issue, so I think their worries increased during this time.”

And while almost half (46 per cent) of Canadians surveyed said they’ve saved more money than they would have since the onset of the pandemic, among these respondents, over half (52 per cent) didn’t put any of their savings toward their retirement. Overall, most (63 per cent) Canadians surveyed haven’t set aside or saved anything for retirement in the past year, a five-point increase since 2019.

McCormick says this may be due to uncertainty or hesitancy about whether people’s immediate needs outweigh longer-term needs. And with 55 per cent of respondents noting they were very concerned about the cost of day-to-day living, he adds that rising prices have fuelled insecurity and worries so people are creating their own emergency funds right now.

While there’s a segment of the population who’ve saved more and, for them, the pandemic has created wealth, he doesn’t see this as a common narrative in the survey data. “If you don’t have access to a workplace pension or the opportunity to have things like automatic enrolment, the uncertainty of the time may have you holding onto money,” says McCormick. “In Ontario, we’re more optimistic about the pandemic than we were maybe a month ago, but there are still people worrying about whether there’ll be a fourth wave.”

In addition, more than two-thirds (67 per cent) of respondents said a retirement crisis is looming and 65 per cent said saving for retirement is prohibitively expensive. It’s a common and shared dream for many people in looking forward to a secure retirement, says McCormick, noting for many, making that dream a reality remains elusive.

Continue Reading

Chat

Trending