San Francisco, Jan 3 (AP/UNB) — Apple acknowledged that demand for iPhones is waning, confirming investor fears that the company's most profitable product has lost some of its luster.
The reckoning came in a letter from Apple CEO Tim Cook to the company's shareholders released after the stock market closed Wednesday.
Cook said Apple's revenue for the October-December quarter — including the crucial holiday shopping season — will fall well below the company's earlier projections and those of analysts, whose estimates sway the stock market.
Apple now expects revenue of $84 billion for the period. Analysts polled by FactSet had expected Apple's revenue to be about 9 percent higher — $91.3 billion. The official results are scheduled to be released Jan. 29.
Cook traced most of the revenue drop to China, where the economy has been slowing and Apple has faced tougher competition from home-team smartphone makers such as Huawei and Xiaomi. President Donald Trump has also raised new tensions between the U.S. and China by imposing tariffs on more than $200 billion in goods, although so far the iPhone hasn't been affected directly.
China's "economy began to slow there for the second half," Cook said during an interview with CNBC on Wednesday afternoon. "The trade tensions between the United States and China put additional pressure on their economy."
Cook also acknowledged that consumers in other markets aren't buying as many of the latest iPhones, released last fall, as Apple had anticipated — a factor that could stem from a starting price of $1,000 for Apple's top-of-the-line iPhones.
Apple's stock plunged 7 percent to $146.40 in Wednesday's extended trading. The shares had already fallen 32 percent from their peak in early October when investors still had high hopes for the new iPhone models. Apple's troubles may have ripple effects on other technology companies, given investors have been bailing on the industry in recent months. The tech-driven Nasdaq composite index now stands 18 percent down from its record closing high reached in August.
Now, Apple must try to find a way to win back Wall Street's confidence and reverse a steep decline that has erased $350 billion in shareholder wealth in just three months.
"This is Apple's darkest day during the Cook era," Wedbush Securities analyst Daniel Ives said. "No one expected China to just fall off a cliff like this."
While President Donald Trump's trade war with China isn't helping Apple and other U.S. technology companies, Ives believes Apple miscalculated by continuing to roll out high-priced phones in China, creating an opening for rivals with less costly alternatives that still worked well.
The price gap is one reason Huawei surpassed Apple in smartphone sales from April through September last year to seize the No. 2 spot behind industry leader Samsung, according to the research firm International Data Corp.
"The question now is will Apple change its strategy or stick to its hubris," Ives said.
To help boost iPhone sales, Cook said Apple will expand its financing plans and build upon its recent efforts to make it easier to trade in older models at its stores.
But outsiders will find it harder to see how that's working out. In November, Apple unexpectedly announced that it would no longer disclose how many iPhones it ships each quarter, ending a long-running practice. Wall Street immediately interpreted the move as an attempt to mask a slow but steady downturn in sales.
Apple said at the time that it wanted to reduce investor focus on its iPhone division and instead highlight other promising areas of its business, including its services division that sells subscriptions for music streaming, collects app-related commissions and repairs malfunctioning devices.
But the company now expects its annual revenue to fall 5 percent from the previous year's level. That reversal of fortune could reinforce fears of a global economic slowdown .
Shenzhen, Dec 25 (Xinhua/UNB)- Chinese technology firm Huawei said on Tuesday that it had shipped more than 200 million smartphones so far this year, a new record high for the company.
In 2010, Huawei's smartphone shipments were 3 million units, according to market research firm IDC.
The company overtook Apple in the second and the third quarters of 2018 to become the world's second-largest phone vendor, IDC said.
Richard Yu, CEO of Huawei's consumer business group, said the group hopes to become a pioneer and leader in the new generation of the smartphone revolution, continue to create values for the consumers and make Huawei a more favored global brand.
Headquartered in the south China city of Shenzhen, privately-owned Huawei is a world-leading telecom solution provider and also one of the world's major smartphone brands.
Washington, Nov 26 (AP/UNB) — Apple is at the Supreme Court to defend the way it sells apps for iPhones against claims by consumers that the company has unfairly monopolized the market.
The justices are hearing arguments Monday in Apple's effort to end an antitrust lawsuit that could force the iPhone maker to cut the 30 percent commission it charges software developers whose apps are sold exclusively through Apple's App Store. A judge could triple the compensation to consumers under antitrust law if Apple ultimately loses the lawsuit.
Apple says it doesn't own the apps or sell them. That's the responsibility of software developers.
But the lawsuit says the Cupertino, California-based company exerts a lot of control over the process, including a requirement that prices end in .99. And iPhone apps are only available through the App Store.
The issue for the Supreme Court is whether Apple can even be sued about the apps, given prior high court rulings in antitrust cases. In other cases, the justices have said there must be a direct relationship between the seller and a party complaining about unfair, anticompetitive pricing.
Consumers can choose from among more than 2 million apps, up from the 500 apps that were available when Apple created the App Store in 2008. "The phrase 'there's an app for that' is now part of the popular lexicon," Chief Justice John Roberts noted in a 2014 decision limiting warrantless searches of cellphones by police. Apple has trademarked the phrase.
But the company says the popularity of software for iPhones and its App Store shouldn't obscure that consumers buys apps from developers, not Apple.
"Apple is a sales and distribution agent for developers," Apple's lawyers said in a Supreme Court filing. "Apple's core argument has always been that any injury to consumers necessarily depends on developer pass-through decisions, since Apple does not set apps prices."
Apple takes a 30 percent commission on the sale of apps, but it says any complaints about its pricing structure should come from developers, not consumers, since it's the developers who pay the commission. The Trump administration is backing Apple at the high court.
A trial court initially dismissed the lawsuit, but the 9th U.S. Circuit Court of Appeals revived it.
Lawyers for the consumers urged the high court to allow the lawsuit to proceed. Consumers "pay the monopoly prices for apps directly to Apple through its App Store," the lawyers wrote in their Supreme Court brief. That direct relationship makes Apple the proper target of an antitrust lawsuit, they said.
A victory for Apple could severely restrict consumers' ability to sue over antitrust violations even though Congress envisioned such lawsuits "would form a central component of enforcement of the antitrust laws," warned 18 scholars of antitrust law in a Supreme Court filing.
A decision in Apple Inc. v Pepper, 17-204, is expected by late spring.
Dhaka, Nov 18 (UNB)- Robi-10 Minute School, country’s largest online educational platform with its skill development, academic and inspirational topics, has made the learning more enjoyable and innovative.
Robi-10 Minute School (www.robi10minuteschool.com), has so far published a total of 786 blogs on countless academic topics, inspirational stories, skill development, career and creative life hacks to make the learning more fun.
The site is also one of its kinds to have a growing number of over 148 skill development blogs that teaches students important skills such as making a CV, giving an interview or a presentation, and many more topics that are very crucial for students these days.
The platform also has a number of blog categories that include career skills, life hacks, book reviews and a miscellaneous category that covers a wider range of learning content, making it the largest and most unique educational blog of the country.
Dhaka, Nov 10 (UNB) - Huawei Consumer Business Group (Bangladesh) offers discounts on two popular smartphones for Bangladeshi consumers.
Nova 3i featuring four artificial intelligence (AI) cameras will be available at a discount of Tk 2,000, while the price of Huawei Y9 2018 phone featuring four cameras, Huawei full-view display and 3 cards will be discounted by Tk 1,600.
According to the revised price, Nova 3i will be sold for Tk 26,990 and Y9 2018 for Tk 17,990.
This phone sets will be available at all Huawei brand shops and authorized mobile outlets across the country with the discounted price.
Huawei Nova 3i phone features 6.3-inch full-view Notch Display, Dual Facing Camera with 24-megapixel primary sensor, 2 megapixel sensor, 16-megapixel primary sensor, and a rear camera with 2-megapixel secondary sensor. It is also provided with 4-GB RAM and 128-GB ROM.
On the other hand, Y9 2018 phone features 5.9-inch Huawei full-view display, 4000-milliampere powerful battery, 3-GB RAM, and 32-GB ROM. Moreover, the handset is equipped with 3 card slots facilitating the option for up-to-256GB micro-SD card in addition to dual SIM.