What Tim Cook left out about China in Apple's revenue guidance

"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", the statement said. The fallout has also left some Chinese shoppers boycotting major United States companies such as Apple.

Apple isn't the only company facing difficulties in a slowing Chinese economy and escalating trade tensions. Some of the company's iPhones have passed the $1,000 mark while Chinese brands look to fill the mass market.

Earlier today President Trump's reply indirectly to Cook was that he doesn't fear the impact of Apple's stock on the US economy because Apple mostly makes its products in China.

Ives, the Wedbush analyst, said that even though he thinks most of Apple's issues are self-inflicted, "the quicker and the smoother the US-China talks get settled is good not just for Apple, but for the broader stock market".

The Dow Jones industrial average fell by around one per cent in early trading, while the S&P 500 slipped similarly. As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed.

At present, trade talks between China and the United States have been scheduled to be held in Beijing on January 7-8, according to CNBC.

In the letter, which was released after the markets closed, Cook said Apple expects revenue of $84 billion for the quarter, nearly a tenth lower than the consensus expectation in financial markets.

But over the past three months, the tech giant's stock price has been in a free fall - and the firm blames China's economy.

"Our non-iPhone businesses have less exposure to emerging markets", he wrote.

The rare warning of disappointing results from Apple sent a shudder through markets Thursday and reinforced fears that the world's second-largest economy is weakening.

Qualcomm, which requested the ban, said last month that the Fuzhou Intermediate People's Court ordered four Apple subsidiaries to stop selling older models of the iPhone, including the 7, 7 Plus, 8, and 8 Plus.

"During the previous shareholder conference, Apple estimates four major factors that would affect the company's performance in the quarter", said Cook.

Robert Pavlik, chief investment strategist at SlateStone Wealth in NY said Apple's update "reiterates worries that China and trade issues have not been resolved". Our results in China include a new record for Services revenue, and our installed base of devices grew over the a year ago.

Investors were shaken this week as Apple warned late Wednesday it would miss revenue expectations for its fiscal first-quarter.

  • Eleanor Harrison