Apple warns worse expected turnover action collapse: Apple warns worse expected turnover action collapse: Apple announced Wednesday, yesterday evening in France, that the turnover of the first quarter of its lagged exercise would be lower than its original forecast, evoking in particular the weakness of emerging markets and fewer innovations for its iPhones.
Apple, whose share fell by 8% after-the-stock market, only confirms the apprehensions of Wall Street in a context of slowing growth in the smartphone market.
This is also the first time since the launch of the iPhone in 2007 that Apple has issued a warning on its turnover before the publication of its quarterly.
Apple warns worse expected turnover action collapse
Apple expects in its first quarter, corresponding to the period October-December, a turnover of some 84 billion dollars (74 billion euros), while it projected in early November, on the occasion of the publication of its fourth-quarter accounts, from 89 to 93 billion dollars.
The consensus of analysts is $ 91.5 billion, according to Refinitiv's IBES data.
"Although we were anticipating difficulties in important emerging markets, we have not measured the extent of economic deceleration, especially in Greater China," said CEO Tim Cook in a letter to investors.
Cook mentioned a slowdown in the growth of emerging countries such as Brazil, India and Russia to explain the revision of the forecast but he stressed that it "would not put China in this category" of countries to the problematic growth.
Brokers had reduced their iPhones production forecast in the first quarter after several component manufacturers anticipated lower than expected sales.
The Apple stock, which had ended up very slightly, lost 8% after closing, and the capitalization of the company was found to be less than 700 billion dollars, while it exceeded the 1,100 billion dollars at its peak, last October.
The shares of some Apple suppliers were similarly declining: Qualcomm sold 2.4%, Qorvo 5.2% and Skyworks 4.4% and Micron Technology 2.75%.
If Apple opens around its current prices Thursday, it will be exceeded, in terms of capitalization, by Alphabet, which reaches 730 billion dollars, and will be a little further behind Microsoft and Amazon.com.
Apple sticks to its high-end strategy in China despite the threat of slower growth on the spot and the strength of the dollar, a concern when it comes to converting selling prices in currency local.
"The question that investors will ask is how much of Apple's aggressive price strategy has exacerbated this situation and what it means for its ability to set longer-term prices in its iPhones range." says James Cordwell, an analyst at Atlantic Equities.
RELATED: Apple has sold fewer iPhones than expected during the holidays, but Wall Street remains positive
Apple's iPhone sales were below analysts' estimates during the holiday season, which is very important, and the company has announced lower-than-expected sales forecasts for the current quarter.
Despite worrying results, which come amidst the launch of the highly media-friendly iPhone X anniversary, investors praised the ads on Thursday - or at least sighed with relief.
The Apple stock gained more than 3% in after-market trading Thursday, after briefly bowing when the results came out.
After a few difficult weeks before Apple's results, punctuated by a series of press reports of weak demand for iPhone, Thursday's results seem to have calmed the nerves and investors found reason to be optimistic in the results of the review. Apple.
How far can the prices of the iPhone go?
Apple earned total revenue of $ 88.3 billion in its first fiscal quarter, up about 13% year-on-year, and higher than Wall Street's expectations of $ 87.1 billion.
The increase in sales occurred despite a disappointment in deliveries of the largest product from Apple. At this time last year, Apple sold 78 million iPhones, but this year the company has only sold 77.3 million units. The previous year's quarter was one more week, which explains the decline.
The drop in iPhone sales was offset by a significantly higher average iPhone price - at $ 796, it costs more than $ 100 more than the average iPhone price a year earlier. This sharp rise in the average price of the iPhone is probably due to the iPhone X, the highest-end phone Apple, with a starting price of 999 dollars.
More importantly, the results show that the high price of the iPhone X did not lead customers to search for cheaper alternatives.
Apple also said it planned to reduce its cash balance to "about zero" after the major tax reform passed in the US in December and that the company would pay $ 38 billion in taxes to the US government, said Financial Director Luca Maestri at the Financial Times.
This means that Apple could spend up to $ 163 billion in short-term acquisitions, dividends and buybacks. Apple declared a dividend of .63 dollar per share on Thursday.
Apple was one of three tech giants who announced their results on Thursday, along with Amazon and Alphabet. Amazon jumped up to 6% after trading thanks to a quarter that beat expectations. Alphabet shares fell after the stock market after missing Wall Street earnings targets.