From Forbes: Has Apple reached its peak?
Yesterday, what we feared for months finally happened: Apple CEO Tim Cook issued the company's first profit warning in 16 years—the last one was in June 2002 or 6 years before the initial launch of the iPhone—acknowledging a $9 billion drop in sales to approximately $84 billion from the high-end of its initial guidance of $93 billion for the last quarter of 2018.
In comparison, Apple revenues for the 2017 holiday quarter was $88.3 billion, the biggest quarter in the company's history.
In a letter to investors, Cook blamed the profit warning on a single key factor: The collapse of iPhone sales in China.
"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," wrote Cook.
Adding that lower than anticipated iPhone revenue, primarily in Greater China, accounted for all of the Silicon Valley company's revenue shortfall to its original guidance and for much more than its entire year-over-year revenue decline of $4.3 billion.
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