Apple to detail revised down Q1 2019 revenue on Jan. 29

Posted:
in AAPL Investors edited January 2
Apple on Wednesday said it will report quarterly earnings for the first quarter of 2019 on Jan. 29, when company executives are expected to detail a a rare revenue forecast cut on the back of weak iPhone sales.

Apple Investor News


The quarterly earnings report will be followed by a conference call set for Tuesday, Jan. 29. at 2 p.m. Pacific, 5 p.m. Eastern, Apple said in an update to its Investor Relations webpage.

CEO Tim Cook and CFO Luca Maestri are anticipated to take part in the call that should provide detail on Apple's recently revised revenue expectations.

Earlier today, Cook in a letter to investors said Apple is on track to generate $84 billion in revenue for the important first fiscal quarter of 2019, down from original expectations of between $89 billion and $93 billion. The reduction is being blamed in large part on weak iPhone demand in China and unspecified emerging markets.

"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 said.

Specifically, Apple failed to foresee a deceleration in China's economy that was in part spurred on by increased trade tensions with the U.S.

Beyond macroeconomic factors and U.S. dollar strength-related price increases, Cook blamed the revenue miss on miscalculated upgrade demand. In particular, the executive said low-cost battery replacements and fewer carrier subsidies are hindering the usual upgrade cycle.

Apple has not lowered guidance for a current quarter in more than 15 years.
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Comments

  • Reply 1 of 26
    lennlenn Posts: 36member
    HAHA. Looks like people are starting to wake up and refusing to pay these outrageous prices just to keep Cook's sky high profit margins going. At least I hope that's the case. So crazy to spend 1k or more on a damn phone!
    tailstoomuthuk_vanalingambdkennedy1002propod
  • Reply 2 of 26
    AppleExposedAppleExposed Posts: 403unconfirmed, member
    lenn said:
    HAHA. Looks like people are starting to wake up and refusing to pay these outrageous prices just to keep Cook's sky high profit margins going. At least I hope that's the case. So crazy to spend 1k or more on a damn phone!
    The cheapest iPhone starts at $750.

    Apples quarterly report will most likely be the highest of all companies.

    So no, Apple is not doomed. 
    JFC_PAracerhomie3
  • Reply 3 of 26
    Given the beating that they have taken in the past month, I would have thought that this is largely priced in now, and then some. This is the statement from the horses mouth that confirms what we've been hearing rumors of. Apple has proven to be very solid in their quarterly estimates over many years, so to have a miss that requires this kind of action shows that even they were surprised by the escalating trade tensions. But any assurance from this President about what is or isn't on the table is pretty worthless. Add to that the arrest of the Huawei executive in Canada and the resultant backlash, circling of wagons, etc. and this storm isn't anywhere near over yet. A crisis of our own making, handled badly. 

    And with regards to the $29 battery program and it's impact, an anecodotal report from Monday morning at the Apple Store in University Village in Seattle - there was a wraparound line of people waiting to get in, as it was the last day to take advantage of the offer. Glad to put that behind us!
  • Reply 4 of 26
    eriamjheriamjh Posts: 1,096member
    $89 billion down to $84 billion.  Pennies.  
    Yet their stock took a huge hit.   
  • Reply 5 of 26
    Notice they reduced revenues, which everyone should have expected and the stock as a result has dropped about 30%, but they still expect record earnings, much more important than revenues.

    Also notice revenue is falling 10% from projections, but the stock has fallen already by much more.
    fastasleep
  • Reply 6 of 26
    AppleExposedAppleExposed Posts: 403unconfirmed, member
    ub52209 said:
    Notice they reduced revenues, which everyone should have expected and the stock as a result has dropped about 30%, but they still expect record earnings, much more important than revenues.

    Also notice revenue is falling 10% from projections, but the stock has fallen already by much more.
    I don't believe they will break a record. They might miss it by 4 billion if Cook is right. 
  • Reply 7 of 26
    ub52209 said:
    Notice they reduced revenues, which everyone should have expected and the stock as a result has dropped about 30%, but they still expect record earnings, much more important than revenues.

    Also notice revenue is falling 10% from projections, but the stock has fallen already by much more.
    I don't believe they will break a record. They might miss it by 4 billion if Cook is right. 
    I’m not making it up or guessing, Tim Cook said that exactly in his letter to investors today. Of course, no news articles or new reports mention that because it would take away from the gloom and doom of the story. Bottom line, although less than expected it will still be a record quarter...despite Iphone sales shortfall and despite not having manufactured enough air pods, iPads and Apple watches to meet demand (all of this is in his letter too if you care to read it).
  • Reply 8 of 26
    mdriftmeyermdriftmeyer Posts: 7,197member
    lenn said:
    HAHA. Looks like people are starting to wake up and refusing to pay these outrageous prices just to keep Cook's sky high profit margins going. At least I hope that's the case. So crazy to spend 1k or more on a damn phone!
    You didn't read or perhaps comprehend the article. With China banning the sale of iPhones it is accounting for the drop in sales revenues.


    "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 said.

    Specifically, Apple failed to foresee a deceleration in China's economy that was in part spurred on by increased trade tensions with the U.S.

    Beyond macroeconomic factors and U.S. dollar strength-related price increases, Cook blamed the revenue miss on miscalculated upgrade demand. In particular, the executive said low-cost battery replacements and fewer carrier subsidies are hindering the usual upgrade cycle.


    In summary:

    1. Trade War with China thanks to the lunatic in the WH has China retaliating against US phone sellers [It won't just be Apple getting fucked]
    2. Trade tensions grinding everything down
    3. Telcos are pulling back subsidy options across the board

    The Telcos want new contracts with the phone manufacturers and/or in on co-development. They also want the Fed to fully subsidize their asses while charging tiers to consumers.

    There isn't just tensions between the idiot in the WH and China, there is going to be and explosion of backlash by consumers for the Telcos ignorance of what they can leverage.
    dedgecko
  • Reply 9 of 26
    I love how everyone blamed Trump for China problem. The biggest China issue is the unfettered rip off of Apple with virtually carbon copies of iPhones being sold for pennies on Apple's dollars.  Apple can't compete with that. The Chinese aren't bought into Apple's ecosystem and with the authoritarian government they lost the many benefits of Apple's security.  Trump trying to stop the blatant theft and patent violations is Apple's only hope in China and the developing world. These people don't care for the to them slight benefits of Apple's ecosystem when an iPhone costs more than many earn in a year. Apple succeeding in the third world was never viable.  
    entropys
  • Reply 10 of 26
    rogifan_newrogifan_new Posts: 3,752member
    eriamjh said:
    $89 billion down to $84 billion.  Pennies.  
    Yet their stock took a huge hit.   

    Only in the fantasy land of AI is $5B to $7B considered pennies. $5B is $1B more than last quarters iPad revenues.
    muthuk_vanalingam
  • Reply 11 of 26
    rogifan_newrogifan_new Posts: 3,752member
    lenn said:
    HAHA. Looks like people are starting to wake up and refusing to pay these outrageous prices just to keep Cook's sky high profit margins going. At least I hope that's the case. So crazy to spend 1k or more on a damn phone!
    You didn't read or perhaps comprehend the article. With China banning the sale of iPhones it is accounting for the drop in sales revenues.


    "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 said.

    Specifically, Apple failed to foresee a deceleration in China's economy that was in part spurred on by increased trade tensions with the U.S.

    Beyond macroeconomic factors and U.S. dollar strength-related price increases, Cook blamed the revenue miss on miscalculated upgrade demand. In particular, the executive said low-cost battery replacements and fewer carrier subsidies are hindering the usual upgrade cycle.


    In summary:

    1. Trade War with China thanks to the lunatic in the WH has China retaliating against US phone sellers [It won't just be Apple getting fucked]
    2. Trade tensions grinding everything down
    3. Telcos are pulling back subsidy options across the board

    The Telcos want new contracts with the phone manufacturers and/or in on co-development. They also want the Fed to fully subsidize their asses while charging tiers to consumers.

    There isn't just tensions between the idiot in the WH and China, there is going to be and explosion of backlash by consumers for the Telcos ignorance of what they can leverage.
    Phone companies dropped subsidies years ago. Kind of lame for Cook to play that card now.
    80s_Apple_GuyMplsPmuthuk_vanalingam
  • Reply 12 of 26
    eriamjh said:
    $89 billion down to $84 billion.  Pennies.  
    Yet their stock took a huge hit.   
    Are you a billionaire? If not then we’re do you come off saying 2 billion dollars is pennies?
    muthuk_vanalingam
  • Reply 13 of 26
    bonobobbonobob Posts: 153member
    lenn said:
    HAHA. Looks like people are starting to wake up and refusing to pay these outrageous prices just to keep Cook's sky high profit margins going. At least I hope that's the case. So crazy to spend 1k or more on a damn phone!
    You didn't read or perhaps comprehend the article. With China banning the sale of iPhones it is accounting for the drop in sales revenues.


    "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 said.

    Specifically, Apple failed to foresee a deceleration in China's economy that was in part spurred on by increased trade tensions with the U.S.

    Beyond macroeconomic factors and U.S. dollar strength-related price increases, Cook blamed the revenue miss on miscalculated upgrade demand. In particular, the executive said low-cost battery replacements and fewer carrier subsidies are hindering the usual upgrade cycle.


    In summary:

    1. Trade War with China thanks to the lunatic in the WH has China retaliating against US phone sellers [It won't just be Apple getting fucked]
    2. Trade tensions grinding everything down
    3. Telcos are pulling back subsidy options across the board

    The Telcos want new contracts with the phone manufacturers and/or in on co-development. They also want the Fed to fully subsidize their asses while charging tiers to consumers.

    There isn't just tensions between the idiot in the WH and China, there is going to be and explosion of backlash by consumers for the Telcos ignorance of what they can leverage.
    Phone companies dropped subsidies years ago. Kind of lame for Cook to play that card now.
    They weren’t subsidies, they were loans. They were paid back through monthly fees. I paid $86/mo for my Sprint “subsidized” 4S.  I now pay $30/mo for unlimited data (50 gb) on T-Mobile. The extra cost was far more than the price of the phone over two years of the contract. 
    fastasleep
  • Reply 14 of 26
    bonobob said:
    lenn said:
    HAHA. Looks like people are starting to wake up and refusing to pay these outrageous prices just to keep Cook's sky high profit margins going. At least I hope that's the case. So crazy to spend 1k or more on a damn phone!
    You didn't read or perhaps comprehend the article. With China banning the sale of iPhones it is accounting for the drop in sales revenues.


    "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 said.

    Specifically, Apple failed to foresee a deceleration in China's economy that was in part spurred on by increased trade tensions with the U.S.

    Beyond macroeconomic factors and U.S. dollar strength-related price increases, Cook blamed the revenue miss on miscalculated upgrade demand. In particular, the executive said low-cost battery replacements and fewer carrier subsidies are hindering the usual upgrade cycle.


    In summary:

    1. Trade War with China thanks to the lunatic in the WH has China retaliating against US phone sellers [It won't just be Apple getting fucked]
    2. Trade tensions grinding everything down
    3. Telcos are pulling back subsidy options across the board

    The Telcos want new contracts with the phone manufacturers and/or in on co-development. They also want the Fed to fully subsidize their asses while charging tiers to consumers.

    There isn't just tensions between the idiot in the WH and China, there is going to be and explosion of backlash by consumers for the Telcos ignorance of what they can leverage.
    Phone companies dropped subsidies years ago. Kind of lame for Cook to play that card now.
    They weren’t subsidies, they were loans. They were paid back through monthly fees. I paid $86/mo for my Sprint “subsidized” 4S.  I now pay $30/mo for unlimited data (50 gb) on T-Mobile. The extra cost was far more than the price of the phone over two years of the contract. 
    Very true but to those who only saw what they paid out of pocket it did make a big difference to their immediate back account. 
  • Reply 15 of 26
    rogifan_newrogifan_new Posts: 3,752member
    bonobob said:
    lenn said:
    HAHA. Looks like people are starting to wake up and refusing to pay these outrageous prices just to keep Cook's sky high profit margins going. At least I hope that's the case. So crazy to spend 1k or more on a damn phone!
    You didn't read or perhaps comprehend the article. With China banning the sale of iPhones it is accounting for the drop in sales revenues.


    "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 said.

    Specifically, Apple failed to foresee a deceleration in China's economy that was in part spurred on by increased trade tensions with the U.S.

    Beyond macroeconomic factors and U.S. dollar strength-related price increases, Cook blamed the revenue miss on miscalculated upgrade demand. In particular, the executive said low-cost battery replacements and fewer carrier subsidies are hindering the usual upgrade cycle.


    In summary:

    1. Trade War with China thanks to the lunatic in the WH has China retaliating against US phone sellers [It won't just be Apple getting fucked]
    2. Trade tensions grinding everything down
    3. Telcos are pulling back subsidy options across the board

    The Telcos want new contracts with the phone manufacturers and/or in on co-development. They also want the Fed to fully subsidize their asses while charging tiers to consumers.

    There isn't just tensions between the idiot in the WH and China, there is going to be and explosion of backlash by consumers for the Telcos ignorance of what they can leverage.
    Phone companies dropped subsidies years ago. Kind of lame for Cook to play that card now.
    They weren’t subsidies, they were loans. They were paid back through monthly fees. I paid $86/mo for my Sprint “subsidized” 4S.  I now pay $30/mo for unlimited data (50 gb) on T-Mobile. The extra cost was far more than the price of the phone over two years of the contract. 
    Yep. I just used the word subsidies because that’s what Cook (and so many others used). I always hated the word subsidy because a no interest loan that has to be paid back is not a subsidy in my opinion.
    edited January 2 muthuk_vanalingam
  • Reply 16 of 26
    MplsPMplsP Posts: 1,004member
    lenn said:
    HAHA. Looks like people are starting to wake up and refusing to pay these outrageous prices just to keep Cook's sky high profit margins going. At least I hope that's the case. So crazy to spend 1k or more on a damn phone!
    The cheapest iPhone starts at $750.

    Apples quarterly report will most likely be the highest of all companies.

    So no, Apple is not doomed. 
    The iPhone 7 starts at $450
    fastasleep
  • Reply 17 of 26
    MplsPMplsP Posts: 1,004member

    bonobob said:
    lenn said:
    HAHA. Looks like people are starting to wake up and refusing to pay these outrageous prices just to keep Cook's sky high profit margins going. At least I hope that's the case. So crazy to spend 1k or more on a damn phone!
    You didn't read or perhaps comprehend the article. With China banning the sale of iPhones it is accounting for the drop in sales revenues.


    "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 said.

    Specifically, Apple failed to foresee a deceleration in China's economy that was in part spurred on by increased trade tensions with the U.S.

    Beyond macroeconomic factors and U.S. dollar strength-related price increases, Cook blamed the revenue miss on miscalculated upgrade demand. In particular, the executive said low-cost battery replacements and fewer carrier subsidies are hindering the usual upgrade cycle.


    In summary:

    1. Trade War with China thanks to the lunatic in the WH has China retaliating against US phone sellers [It won't just be Apple getting fucked]
    2. Trade tensions grinding everything down
    3. Telcos are pulling back subsidy options across the board

    The Telcos want new contracts with the phone manufacturers and/or in on co-development. They also want the Fed to fully subsidize their asses while charging tiers to consumers.

    There isn't just tensions between the idiot in the WH and China, there is going to be and explosion of backlash by consumers for the Telcos ignorance of what they can leverage.
    Phone companies dropped subsidies years ago. Kind of lame for Cook to play that card now.
    They weren’t subsidies, they were loans. They were paid back through monthly fees. I paid $86/mo for my Sprint “subsidized” 4S.  I now pay $30/mo for unlimited data (50 gb) on T-Mobile. The extra cost was far more than the price of the phone over two years of the contract. 
    Yep. I just used the word subsidies because that’s what Cook (and so many others used). I always hated the weird subsidy because a no interest loan that has to be paid back is not a subsidy in my opinion.
    Money isn't free, and a no-interest loan is a form of subsidy just like no/low interest loans from car manufacturers and the low interest loans cities give to pro sports have costs. If you think otherwise, go to your bank and ask for a 0% loan and report back on their response.
    fastasleep
  • Reply 18 of 26
    MplsPMplsP Posts: 1,004member
    Over the last several weeks we've seen a steady stream of reports of decreased iPhone sales. Multiple people have slammed these reports as 'FUD by anti-Apple trolls' or BS by clueless analysts, even in the face of increasing numbers of reports from different sources. Now that Tim Cook himself has come out and said that sales are down are these people going to admit that they were wrong?
    muthuk_vanalingam
  • Reply 19 of 26
    ..
    Phone companies dropped subsidies years ago. Kind of lame for Cook to play that card now.
    Maybe! But I guess its an acknowledgment that the phone prices are a bit high... I am hopeful
  • Reply 20 of 26
    Notice most assume Cook stated iPhone sales down. He didn’t. They might be, but that is not in the statement. Apple is selling more older phones than ever before. This year’s models usage are outstripping last year’s iPhone X usage at the same time last year. I think the top end is fine. The bottom end likely is too. It’s still possible to see a decrease in revenues and increase in units. I think what’s actually happening from looking at usage data and comparing to previous years is that people are buying low and high and missing the middle. Apple can fix this with an iPad mini and a mid-year low end x. 
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