The Dow Jones Industrial Average plummeted 660 points at the market’s close on Thursday following Apple CEO Tim Cook’s announcement in a Wednesday letter to investors that an “economic deceleration” in China caused a decreased revenue outlook for the company’s first fiscal quarter of 2019.
Fallout from US President Donald Trump's trade war and the recent arrest of Huawei's CFO Meng Wanzhou in Canada have both contributed to Apple's decline in revenue guidance from between $89 and 93 billion to $84 billion.
"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 wrote Wednesday.
While tariffs have been a prolonged point of contention between Washington and Beijing, the arrest of Meng, who is also the daughter of Huawei's founder and president Ren Zhengfei, appeared to be the final straw for many Chinese individuals and companies. Chinese companies are said to have openly warned staff against buying Apple products and merchandise, while offering subsidies for those who go the Huawei route.
"When the US went after the Huawei founder's daughter, the Chinese government made Apple the target of the day, so sales should be way off," technology analyst Rob Enderle told AFP.
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