Apple has cut its revenue estimate for its fiscal 2019 first quarter, the company is expecting revenue of $84 billion for the quarter, this would be down from $88 billion on the same quarter of 2018.
Apple had previously predicted revenue pf $89 to $93 billion for the quarter, so this new estimate is down almost $10 billion from their previous top estimate.
Apple CEO Tim Cook sent out a letter to shareholders explaining why they had cut their forecasts, he has said it is due to lower than anticipated revenue from the iPhone in China and also some other countries.
While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be. While macroeconomic challenges in some markets were a key contributor to this trend, we believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements.
Whilst Apple may blame a number of factors for lower than expected iPhone sales, there is one factor that I suspect may have contributed to the lower iPhone sales, the price of this years iPhones. Apple’s latest iPhones are more expensive than any of their previous handsets and this could have put a lot of people off buying the handset.
We saw the company offer trade in incentives on their new iPhone XR just before the holidays in an attempt to boost sales, it looks like this did not help them achieve their predicted revenue. It will be interesting to see what happens over the next financial quarter, whether Apple can increase their sales over the previous year.