The new year is only a few days old, but so much has happened. Netflix and Saudia Arabia have angered a number of subscribers. Coachella has released the line-up for this year’s festival. Congress may shut down again and much more is on the horizon. With all of the being said, the tech world is not far behind. Apple made headlines this week with a report from its CEO, Tim Cook.
In a letter addressed to investors, Tim Cook warned of weaker first-quarter earnings than expected. Cook also noted that “in some developed markets, iPhone upgrades also were not as strong as we thought they would be.” As the letter went on, Cook went in to more detail about the expected performance of the company during the first quarter.
As it relates to the company’s current struggles, Cook noted that the demand for iPhones may be weaker in some countries than others. Specifically, Cook wrote, “Lower than anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline.” Cook believes that the cause for the drop in demand could be trade tensions between the United States and China. As a result, The Verge is reporting that “Apple’s revised Q1 guidance forecast is dropping by up to $9 billion in revenue compared to its original estimate.”
On the bright side, Cook did note that other areas of the company went up as high as 19%.