Apple has fallen victim to the Asian contagion, according to CEO Tim Cook as sales in China plummeted.
Shares of the iPhone maker cratered nearly 8 percent in extended trading Wednesday — knocking some $50 billion off the market cap after the company took the unusual step of cutting its revenue guidance.
In a letter to investors, Cook said that Apple expects to report $84 billion in revenue during its next earnings report — it previously forecasted $91 billion.
Cook placed the blame on “both macroeconomic and Apple-specific factors,” and said that the iPhone maker failed to “foresee the magnitude of the economic deceleration” in emerging markets. The CEO never cited the $1,500 price point for the most expensive model.
Indeed, Cook said that “over 100 percent” of Apple’s worldwide revenue decline “occurred in Greater China across iPhone, Mac and iPad.”
Cook also said that Apple hurt its bottom line when it slashed the price of iPhone battery replacements early last year after it was caught red-handed slowing down older iPhones to preserve their aging batteries.
Though Cook did not acknowledge the eye-watering prices of Apple’s new iPhone XS and XS Max — which start at $999 and top out at $1,449 — as a contributing factor to Apple’s woes, he did point a finger at “US dollar strength-related price increases.”