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Thursday, 3 January 2019
Apple lowers revenue guidance for Q1 2019 citing fewer iPhone upgrades in China
Apple has announced that it is revising its guidance for Apple’s fiscal 2019 first quarter, which ended on December 29. The company expects total revenue of approximately $84 billion, gross margin of approximately 38%, operating expenses of approximately $8.7 billion. Apple expects the number of shares used in computing diluted EPS to be approximately 4.77 billion. Apple says that it is aware of the different timing of the iPhone launches would affect the year-over-year compares. The top-end iPhone XS and iPhone XS Max, shipped in Q4’18—placing the channel fill and early sales in that quarter, whereas last year iPhone X shipped in Q1’18, placing the channel fill and early sales in the December quarter. This created a difficult compare for Q1’19, and this played out broadly in line with the expectations, says Apple. The company also says that it knew the strong US dollar would create foreign exchange headwinds and forecasted this would reduce its revenue growth by about 200 basis points as compared to the previous year. Sales of Apple Watch Series 4 and iPad Pro were constrained much or all of the quarter. AirPods and MacBook Air were also constrained. Owing to the economic weakness in some emerging markets had a significantly greater ...
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