Apple Lowers Q1 2019 Revenue Expectations Amid Emerging Market Weakness
Apple revises its fiscal first-quarter revenue guidance down to approximately $84 billion, citing greater than expected economic weakness in emerging markets.
Apple revises its fiscal 2019 first-quarter guidance to approximately $84 billion in revenue, a significant drop from its original predictions. While gross margins, operating expenses, and tax rates remain broadly in line with earlier expectations, the overall revenue falls short due to unforeseen market conditions.
Several anticipated factors play out as expected, including the different timing of iPhone launches compared to the previous year and foreign exchange headwinds from a strong US dollar. Additionally, supply constraints limit the sales of new products like the Apple Watch Series 4, iPad Pro, AirPods, and MacBook Air throughout the quarter.
The primary driver of the revised guidance is an economic slowdown in emerging markets that impacts Apple far more severely than initially forecasted. The company plans to share its final quarterly results in the coming weeks, though these preliminary figures indicate a notable shift from its earlier growth projections.