Apple, one of the most popular names in the market for electronic gadgets revealed on Wednesday that holiday sales in China were even less than were expected. As a result, Apple expects a revenue of about $84 billion in the quarter that ended in December 2018. This is down from a previous estimate of $89 billion to $93 billion, a nearly 5 percent decline from the same quarter a year ago.
The revenue shock has sent the Apple stock reeling. The stock ended trading $15.73 lower (9.96%) today at $142.19.
This has resulted in a fear of turmoil in global markets. The decreased sale of Apple products in China hints at its receding economy whose factors range from the price of Apple products to the trade battle that the president of the United States, Donald Trump is waging on China.
The price of every new gadget that is released by Apple is almost always expensive from its previous models, therefore, money may not be the only factor for the slump in Apple products but it is surely the most logical one.
On an average, it costs about $1000 to buy an Apple phone which nearly has all the features that another phone by a not so famous company has. The brand value along with the security it provides is the strongest reason why Apple products were preferred by people, even if they are expensive than most.
On the other hand, due to the emergence of other reasonably priced phones with some of the same and some better features, it is quite possible that customers might be getting tired of Apple products which resulted in the poor sales thus decreasing the stock value.
However Apple is of the opinion that the trade war between America and China is the cause of its abysmal sales because it has rendered people unnerved and in the words of Mark Zandi, chief economist at Moody's Analytics, “the iPhone is something that everyone knows and buys, and if people aren’t buying it, then that’s a pretty good sign they’re having a hard time.”