- Jul 30, 2021
On Thursday, Apple Inc. warned that holiday quarter sales may miss Wall Street expectations and that is why Tim Cook the chief executive blamed on weakness in emerging of the foreign exchange costs. World’s most valuable technology company with its disappointing forecast helped send shares down as much as 7% roughly. It took $70 billion off the Apple’s market by forcing the value down by 1 trillion. This forecast made up the concerns high for all the technology companies that sell off after missing by companies like Amazon.com Inc. and Google parent Alphabet Inc.
It expects between $89 billion and $93 billion in revenue for its fiscal first quarter ending in December, with a midpoint of $91 billion coming in below Wall Street expectations of $93 billion, according to IBES data from Refinitiv. – Apple
Chief executive in an interview stated, “Apple is seeing some macroeconomic weakness in some of the emerging markets.” He later told investors on a conference call that weak markets included Brazil, India, Russia, and Turkey. Sales were flat in the fourth quarter in India”, and “Obviously, we would like to see that be a huge growth. Cook said on the call.
They also would quit giving the number of iPhones, iPads and Mac computers, leading to a further drop in the share price, since iPhone unit sales was long the key indicator of quarterly success. Withholding that number will make it impossible to calculate the average selling price of phones, another key measure. – Executives
“Unit sales are becoming less relevant as customers buy bundled products that include subscription services like Apple Music”, they added.
“It would start giving cost-of-sales data for its services business, an important metric for subscription businesses. But investors reacted negatively”, Apple said.