Apple spooks market with profit warning
Apple has slashed its profit targets after warning disappointing iPhone sales over the crucial Christmas season will cause a significant drop in its revenue.
CEO Tim Cook made the announcement after the market closed last night, giving credence to the fears of some investors, who have been dumping Apple shares amid signs the latest iPhone models weren’t living up to sales expectations.
Mr Cook cited China as Apple’s biggest weak spot, but also said that consumers weren’t upgrading to the latest iPhones’ models as eagerly as anticipated.
Apple now expects revenue of $84bn (€74bn) for the fiscal quarter running from October through December. Management had predicted revenue of $89bn to $93bn.
Apple shares fell 7pc in extended trading after the announcement. They have fallen 32pc from an October peak.
Stocks around the world had tread water to ring in the new year while safe-haven assets including bonds, gold and the Japanese yen rallied yesterday as Chinese and European economic data bolstered concerns of a slowdown in global growth.
In the US, the benchmark S&P 500 stock index dropped as much as 1pc after data showed Chinese factory activity contracting for the first time in more than two years, though the index clawed back the losses later in the session.
London’s blue-chip bourse ended 0.1pc higher, while the mid-cap index was up 0.5pc after steep losses earlier yesterday.
In Dublin, the Iseq closed up slightly after mixed trading.
Permanent TSB shares rallied more than 9pc to €1.66 each, part reversing recent declines.