Wall Street shares tumble after Apple warning

Nobody in China wants Apple's eye-wateringly priced iPhones, sighs CEO Tim Cook

Nobody in China wants Apple's eye-wateringly priced iPhones, sighs CEO Tim Cook

"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", Cook said in the letter.

Led by the Dow Jones, U.S. stocks plunged anew on Thursday, as Apple's grim revenue guidance exerted a gravitational pull on the broader market.

The Apple news jolted markets and reinforced fears that the global economy is slowing.

After Asian markets tumbled overnight and European exchanges stumbled, USA futures were trading lower on Thursday morning, dragged down by Apple's stunning announcement Wednesday.

According to a Reuters report, Apple reduced its forecast to $84 billion in revenue for the fiscal first quarter that ended on December 29.

"I think this is probably the first major downgrade that we've seen for fourth-quarter earnings, although I suspect this isn't the last one", he said in an interview.

Many analysts and investors had anxious about a slowdown in iPhone sales since the company said in November it would stop disclosing unit sales data for its phones and other hardware products.

Economic deceleration in China had caught Apple off guard and trade tensions between Washington and Beijing were starting to hurt consumer spending on smartphones in China, Apple Chief Executive Officer Tim Cook said on Wednesday. Apple shares are down 9.27% in midday trading on Wednesday at $143.28.

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Investors also were encouraged by news that the US and China will hold trade talks in Beijing on January 7 and 8.

Kevin Hassett, chairman of the White House council of economic advisers, said that USA companies selling in China would see their sales recover if the trade dispute is resolved.

China is looking to push ahead with its rollout of a faster 5G network, with a pre-commercial phase this year and a commercial network in 2020.

"No, I'm not", Trump said after he was asked at a White House news conference about Apple's revenue warning this week.

"Futures immediately sold off. Apple is a 4 per cent position in the market and considered a bellwether and comments were that the USA was fine, China was slower than expected". "We believe the economic environment in China has been further impacted by rising trade tensions with the United States", he wrote.

"This year has the potential to be a tough year for western brands", said Benjamin Cavender, a Shanghai-based analyst at consultant China Market Research Group.

Peter Richardson, a research director at Hong Kong-based Counterpoint Research, said it was hard to see a catalyst that would help Apple recover lost ground in China. The S&P 500 index was off 62.14 points at 2,447.89, while the Nasdaq composite lost 202.43 points at 6,463.50 with Apple falling by 10 per cent.

Both Apple and Bernstein Liebhard have been contacted for comment. The iPhone is Apple's biggest product. (AAPL) are down more than 9% in NY trading after the company announced it will miss its revenue forecast for the critical holiday quarter.

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