Local stocks are loving the lower dollar - the ASX is up over 1% in the first half hour of trade.
Cook attributed most of the revenue drop to China, where the economy has been slowing and where USA tariffs have been raised on more than $200 billion in goods, although the iPhone hasn't been affected directly so far. He also said Apple is seeing fewer iPhone upgrades than expected, which partially accounted for the new guidance.
And, yes, this is going to bleed well beyond Apple only pulling down $84 billion in revenue for a single quarter, because... As Q1 progressed, traffic to Apple retail stores and its channel partners in China declined.
"While it's disappointing to revise our guidance, our performance in many areas showed remarkable strength in spite of these challenges", he said. Barclays analyst Mark Moskowitz estimated that plan alone cost Apple millions of iPhone sales, according to Bloomberg. On Wednesday, China's central bank magazine said the country's economic growth could fall below 6.5 per cent in the fourth quarter as companies face increased difficulties there. Apple will be keen to prove that its disappointing quarterly earnings are not part of a wider trend.
On Wednesday, Apple said trade tensions had hurt consumer confidence. Apple's shares were briefly suspended on Wednesday night, and in post-market trading fell by up to 8pc, wiping nearly $60bn off its value.
"...and some customers taking advantage of significantly reduced pricing for iPhone battery replacements".
Shares of Apple are tumbling in early trading after the tech giant issued a rare cut to its revenue forecast due to weakness in China.
However, Apple continues to be optimistic about China. Apple originally forecast revenue of between US$89 billion and US$93 billion.
Apple shares are almost 8 per cent down in afterhours trading after the iDevice and computer maker's CEO published a letter about revenue expectations from the most recent quarter.
Twitter has met Apple's troubles with derision, with many pointing out that new models are massively overpriced while hardly being technological breakthroughs.
Apple's surprise announcement added to concerns about the ability of U.S. companies, particularly its technology giants, to navigate an increasingly uncertain economy and a continuing trade war between the United States and China.
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