In a first in more than a decade, Apple has cut its quarterly sales target with Chief Executive Tim Cook blaming weak iPhone sales in China and consumers upgrading their iPhones at a slower pace.
Apple’s share price sank more than 7 per cent in after-hours trade, wiping up to $55 billion off of the company’s stock market value.
“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Cook wrote in his letter to investors.
Cook also wrote about the continued traction in Apple’s “non-iPhone businesses,” including wearable devices and supplementary services, like iCloud, Apple Pay and the App Store. But he admitted that the downward revision of its sales forecast is “disappointing.”
Britain’s FTSE 100 and FTSE 250 .FTMC also fell 0.2 per cent today, outperforming European peers thanks to a strong update by Next.