Apple sees 'challenges' in emerging markets

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Cook attributed the primary drop in revenue to challenges in emerging key markets - mainly China - and a waning in the sales of iPhones. Still, the threat of from China against Apple due to Trump's trade war lingers in the air.

Sales to the USA market have held up despite President Donald Trump's punitive tariffs on $250 billion of Chinese goods, rising 12.9 percent in November over a year earlier.

The broader S&P 500 fell 62 points, or 2.5 percent, to 2,447.

Apple had issued previous guidance suggesting that revenue for its fiscal first-quarter 2019, ended December 29, would come in at between $89 billion and $93 billion.

The latest news sparked talk of the "Nokia moment" for Apple - a reference to the Finnish-based firm that led the mobile phone market in the early 2000s. China PMI figures Tuesday night showed the Caixin index slipping below 50 for its lowest reading since May 2017 and new orders notching their weakest level since June 2016.

China is looking to push ahead with its rollout of a faster 5G network, with a pre-commercial phase this year and a commercial network in 2020. "They want to see the economy slow down, but they don't want to see it slow down too much". "The more data points we get, the clearer we see the extent of the global slowdown". The Apple brand is extremely strong - Interbrand, for example, names it the most valuable brand on the planet. More than US$4 trillion has been pruned from American equity values in the worst fourth-quarter rout since 2008.

Apple shares dropped nearly nine percent on Thursday, falling to their lowest amount since April 2017, the Wall Street Journal reported. Here are three risks to Apple shares that investors need to be mindful of in 2019. There are some indications from China that they're looking at that, but we don't know that yet. "If you have at least a year time horizon, Apple looks pretty attractive".

Factors impacting iPhone sales include "consumers adapting to a world with fewer carrier subsidies, United States dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements", Cook wrote.

Months after Starbucks announced a massive China expansion this year, it said that China sales would increase just 1 percent, far below those in the United States. Costco Wholesale Corp. retreated as much as 1.3 per cent in extended trading.

Gold climbed 0.8 percent to $1,294.80 an ounce. "That's what we're seeing now", said Jack Ablin, chief investment officer of Cresset Wealth Advisors.

Peter Richardson, a research director at Hong Kong-based Counterpoint Research, said it was hard to see a catalyst that will help Apple recover lost ground in China.

Apple's latest comments fuelled worries that its relatively high-priced devices may be falling out of favour in China, where rivals such as Huawei Technologies Co Ltd [HWT.UL] offer cheaper options.